Letters C, D, E, F.

Multiple Changes in Profit Plans: Multiple Products Information on Guadalupe Ltd.'s three products follows: A B Unit sales per month. . Selling price per unit. Variable costs per unit Unit contribution margin .. 1,500 $20.00 (22.00) $ (2.00) 1,200 $14.00 (10.00) $ 4.00 2,000 $30.00 (18.00) $12.00 Required Determine the effect each of the following situations would have on monthly profits. Each situation should be evaluated independently of all others. a. Product A is discontinued. b. Product A is discontinued, and the subsequent loss of customers causes sales of Product B to decline by 150 units. c. The selling price of A is increased to $25 with a sales decrease of 250 units. d. The price of Product B is increased to $20 with a resulting sales decrease of 300 units. However, some of these customers shift to Product A; sales of Product A increase by 200 units. e. Product A is discontinued, and the plant in which A was produced is used to produce D, a new prod- uct. Product D has a unit contribution margin of $2. Monthly sales of Product D are predicted to be 1,500 units. f. The selling price of Product C is increased to $35, and the selling price of Product B is decreased to $10. Sales of C decline by 350 units, while sales of B increase by 400 units