b$)$ Suppose a Six Sigma effort can reduce the defects to a six$-$sigma level $($assume for simplicity that the defective rate is essentially zero$).$ What is the impact on profitability? Hint: variable costs will decrease since you don't have to make the extra units

baseline with six sigma results

Sales $$3,000,000$

LESS Variable Costs $$1,500,000$

Contribution Margin $$1,500,000$

LESS Fixed Costs $$500,000$

NET Profit $$1,000,000$

$\%$ increase in profit