Max$$s income statement for the current year is as follows:

Sales $(10,000$ units$)$ $$308,000$

Less variable costs $(184,800)$

Contribution margin $123,200$

Less fixed costs $(92,400)$

Net income $$30,800$

a$.$ How does profitability change if fixed costs are expected to increase by $10\%$ and variable cost per unit are expected to increase by $$1\mathrm{.}75$ per unit?

Note: Do not use a negative sign with your answer.

Profitability will Answer $1$ by $Answer $2.$

b$.$ How does profitability change if the selling price decreased by $$1\mathrm{.}75$ and units sold increased by $2,000$ units?

Note: Do not use a negative sign with your answer.

Profitability will Answer $3$ by $Answer $4.$