L01, 2, 3, 4, 5 P17.3.3 Applications or Differential Analysis Moscot manufactures high-end sunglasses that it sells in retail shops and online for $310. on aver Mosco Assume the following represent manufacturing and other costs. Variable Costs per Unit Fixed Costs per Month Direct materials $ 80 Factory overhead Direct labor 50 Selling and administrative Factory overhead Distribution... 10 Total $175 35 Total 480 3750 $825.00 The variable distribution costs are for transportation to retail partners. Assume the current monthly production and sales volume is 15,000 units. Monthly capacity is 20,000 units. Required Determine the effect of each of the following independent situations on monthly profits. a. A $50 increase in the unit selling price should result in a 2,000-unit decrease in monthly sales. b. A 10% decrease in the unit selling price should result in a 6,000-unit increase in monthly sales. However, because of capacity constraints, the last 1,000 units would be produced during overtime with the direct labor costs increasing by 50%. c. A British distributor has proposed to place a special, one-time order for 1,000 units at a reduced price of $250 per unit. The distributor would pay all transportation costs. There would be additional fixed selling and administrative costs of $750