The Following Information Pertains to Lilac Company's Three Products Assume That Product C Is Discontinued and the Space Is

Multiple Choice

The following information pertains to Lilac Company's three products: $\begin{array}{lrrr}&A&B&C\\\text { Unit sales per month } & 1,800 & 2,800 & 1,600 \\\text { Selling price per unit } & \$ 3.00 & \$ 5.25 & \$ 3.50 \\\text { Variable costs per unit } & 2.00 & 4.00 & 3.80 \\\text { Unit contribution margin } & \$ 1.00 & \$ 1.25 & \$(0.30) \end{array}$ Assume that product C is discontinued and the space is used to produce B. Product B's production is increased to 4,000 units per month, but the selling price of all units of B is reduced to $5 per unit. Monthly profits will:

A) decrease by $1,000.
B) decrease by $520.
C) increase by $500.
D) increase by $980.