Multiple Changes In Profit Plans In an attempt, to improve profit performs Jacobson Company management of alternative action. An August 2012 contribution income Jacobson Company follows. Determine the effect of each of the following independent situations on monthly profit a. Purchasing automated assembly equipment, which should reduce direct labor costs by 55 per unit and increase variable overhead costs by 52 per unit and fixed factory overhead by $22,000 per month. Reducing the selling price by $5 per unit. This should increase the monthly sales by 5.000 units. At this higher volume, additional equipment and salaried personnel would be required. This will increase fixed factory overhead by $2,800 per month and fixed selling and administrative costs by $2,500 per month. Buying rather than manufacturing a component of Jacobson's final product. This will increase direct materials costs by SI2 per unit. However, direct labor will decline S4 per unit, variable factory overhead will decline SI per unit and fixed factory overhead will decline $15,000 per month. Increasing the unit selling price by S4 per unit. This action should result in a 1,000-unit decrease in monthly sales