Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics: $ Sales price Variable costs Fixed costs 20 per unit 5 per unit 51,000 per month Assume that the company plans to sell 5,500 units per month. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will be the operating profit? Operating profit $ 31,500 b. What is the impact on operating profit if the sales price decreases by 5 percent? Increases by 10 percent? Sales price decreases by 5 percent: Operating profit decreases Sales price increases by 10 percent: Operating profit increases by by c. What is the impact on operating profit if variable costs per unit decrease by 5 percent? Increase by 10 percent? Variable costs per unit decrease by 5 percent: Variable costs per unit increase by 10 percent: Operating profit increases Operating profit decreases by by d. Suppose that fixed costs for the year are 5 percent lower than projected, and variable costs per unit are 5 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Operating profit increases by