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MANAGERIAL ACCOUNTING PROBLEMS

Please answer ALL IN DETAILS to get UPVOTE

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QuestionPricing decisions Total fixed costs are $25,000. Unit variable cost is $20. At current selling price of $50, you sell 1,000 units per month. If you reduce the price by 10%, sale volume will increase to 1,300 units. Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? NO, because a lower price always reduces profit O YES, because revenue will increase by $8,500 YES, because profit will increase by $2,500