A product is currently made in a process$-$focused shop, where fixed costs are $$8,000$ per year and variable cost is $$40$ per unit. The firm currently sells $200$ units of the product at $$200$ per unit. A manager is considering a repetitive focus to lower costs $($and lower prices, thus raising demand$).$ The costs of this proposed shop are fixed costs $=$ $$24,000$ per year and variable costs $=$ $$10$ per unit.

Fixed Cost $$8,000$

Variable Cost $$40$

Units sold $200$

Selling Price $$200$

New Fixed Cost $$24,000$

New Var. Cost $$10$

Complete calculation inside highlighted question cell

a$.$ What is the profit $($or loss$)$ of the current system? $[$Blank$1]$

b$.$ If a price of $$80$ will allow $400$ units to be sold, what profit $($or loss$)$ can this proposed new process expect? $[$Blank$2]$

c$.$ Do you anticipate that the manager will want to change the process? $[$Blank$3]$