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The Following Information Pertains to the Dallas Churning Company's Three

Question 108

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The following information pertains to the Dallas Churning Company's three products: DEF Unit sales per month 9001,400800 Selling price per unit $6.00$11.25$7.50 Variable costs per unit 3.009.007.80 Unit contribution margin $3.00$2.25$(0.30) \begin{array}{lrrr}&D&E&F\\\text { Unit sales per month } & 900 & 1,400 & 800 \\\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \\\text { Variable costs per unit } & 3.00 & 9.00 & 7.80 \\\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$(0.30) \end{array} Assume that the selling price of product F is increased to $8.25 with a reduction in monthly sales to 400 units. Monthly profits will


A) increase by $420.
B) decrease by $60.
C) increase by $180.
D) increase by $2,070.

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