The Goslar Corporation cuts granite, marble, and sandstone for use in building and restoring cathedrals throughout Europe. The German-based company has operations in Italy and Switzerland. Gunder Shillar, the controller, recently determined that the breakeven point was €325,000 in sales. For a quarterly planning meeting, Shillar must provide information about the following six proposals, which the planning team will discuss individually:

a. Increase the selling price of marble slabs by 10 percent.

b. Change the sales mix to respond to an increased demand for marble slabs—that is, increase production and sales of marble slabs and decrease the production and sales of sandstone slabs, the least profitable product.

c. Increase fixed production costs by €40,000 annually to cover depreciation on new stone-cutting equipment.

d. Increase variable costs by 1 percent to cover higher export duties on foreign sales.

e. Decrease the sales volume of sandstone slabs because of a reduction in demand in Eastern Europe.

f. Decrease the number of days a customer can defer payment without being charged interest.

1. For each proposal, determine whether cost-volume-profit (C-V-P) analysis would provide useful financial information.

2. Indicate how each proposal that lends itself to C-V-P analysis would affect profit.