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please help with this practise test 8) The Big-Sucker Vacuum...

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Accounting

please help with this practise test
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8) The Big-Sucker Vacuum Co. is considering the introduction of a new model of hand-held vacuum with the following price and cost characteristics: (6 pts) Sales price $75 per unit Variable costs 40 per unit Fixed costs 80,000 per month Assume that the projected number of units sold for the month is 5,000. Consider requirements (a) and (b) independently of each other. Compute the following and show all your work to receive full credit. What will the operating profit be? a. b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent

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