1. Based on the information contained in the case Exhibits 7 and 8, what would be the estimated change in annual Base Profit if:

1. The company sells 5,000 units/month of the Standard Quartz shower.
2. They also sell 2,000 units/month of the Pumped Quartz shower.
3. Aqualisas Aquavalve 609 unit sales are reduced by 20,000 units per year.
4. Aqualisas Aquastream Thermostatic unit sales are reduced by 10,000 units per year.
5. Annual Marketing expenses are increased by 4,000,000 Euros for Advertising.

Exhibit 7 Aqualisa Select Financials 2000 ( in thousands) Shower Sales (Electric, Mixer, Power, and Pumps) 46,212 Otherb 21,744 Total Sales 67,956 Gross Margins 31,824 Sales 4,080 Marketing 2,724 Customer Service 1,322 Research and Development 1,764 Finance, Administration & Depreciation 4,579 Total Overhead Spend 14,469 Base Profit 17,355 Source: Aqualisa. a Includes all Aqualisa shower lines, including Aquastyle, Aquavalve, and Aquastream. Also includes Aqualisa pumps, as well as a variety of other specialty shower models sold by Aqualisa; these were primarily differentiated by style (eg, contemporary, antique, brass, etc.). Does not include other brands such as ShowerMax and Gainsborough. b Aqualisa sold a variety of other products, including shower accessories and commercial products. Exhibit 8 Aqualisa: Selected Products and Price Points Model Segment Retail Price MSP Cost Margin Aquastyle Premium 230 155 95 60 Aquavalve 609 Standard 715 380 155 225 Aquavalve Value Value 390 205 75 130 Aquastream Thermostatic Standard 670 350 175 175 Aquastream Manual Value 480 250 140 110 Quartz Standard Premium 850 450 175 275 Quartz Pumped Premium 1,080 575 230 345 Aquaforce 1.0/1.5 Bar Standard 445 230 125 105 Aquaforce 2.0/3.0 Bar Premium 595 310 175 135 Source: Aqualisa. I Note: "Retail price refers to the price charged by the retailer (trade shop, showroom, or DIY outlet) to the customer. "MSP" refers to manufacturer selling price (Aqualisa's price to the channel)