Question: A company sells a single product with a contribution margin of $ 3 8 per unit. The company currently sells 1 9 0 0 units

A company sells a single product with a contribution margin of $

38

per unit. The company currently sells

1900

units per year and management believes that if they reduce the sales price by $

1

per unit, sales will increase by

9 % .

How much will annual profit change if they take this action?

(

Round your final answer to the nearest dollar. Make sure to calculate the change in profit and not the new total profit. Indicate an increase in profit with a positive number and a decrease in profit with a negative number.

)

Answer and explanation please!

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