1. Wang Bakery sells muffins. The average selling price for of a muffin is $5.40. Average variable cost per muffin is $2.60. The average fixed expenses per month is $2,492. The average number of muffins sold per month is 900.

   Would you decrease the variable cost per muffin to $2.40 and the selling price to $5.00 if the number of muffins sold per month would increase to 980?

   	a.	Yes, because profit increases
   	b.	Yes, because Wang will sell more units
   	c.	Not enough data to make a decision
   	d.	No, because contribution margin per unit decreased
   	e.	No, because profit decreases