A B C D E F G H 1 CVP 2 Lodi Lumber sells three types of wood: Pine, Ash, and Oak. 3 In March, Lodi Lumber had the following data: Unit sales: 5 Pine 2,500 6 Ash 2,500 7 Oak 2,500 8 Variable cost from wholesaler: 9 Pine $7 10 Ash $12 11 Oak $15 12 Lodi Lumber's contribution margin: 13 Pine 30% 14 Ash . 40% 15 Oak 50% 16 Fixed costs: $ 60,000 17 18 On April 1st, everyone went crazy and the wholesale price of lumber spiked. Pine doubled, Ash tripled, and Oak quadrupled! 19 Larry Long, Lodi Lumber's leader, became extremely worried. 20 He laid at night wondering "What if customers can't afford these crazy prices!? We'll go bankrupt!" 21 Larry woke up and took action. He immediately terminated one employee saving $8,000 per month. 22 He then decided to reduce the contribution margins of the various products to the following levels: Pine 20%, Ash 25%, and Oak 36%. 23 He then said a prayer that customers would still come. 24 Well... some customers came. Total unit sales declined by 3,500 from March, and customer preferences shifted toward cheaper goods. 25 For April, the sales mix was Pine 50%, Ash 30%, Oak 20%. 26 27 Everything else stayed the same. So...how much - in dollars - did Lodi Lumber's monthly profit decline from March to April? 28 Enter as a positive number. 29 30 31