Multiple Choice, Question 40 The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe. Standard 4,000 $96,000 Deluxe 3,500 $147,000 Total 7,500 $243,000 Sales volume (units) Revenue Variable Costs Direct materials Direct labor Marketing & Sales Contribution Margin Fixed Costs Manufacturing Marketing & Sales Administration Profit Before Tax 12,000 16,000 20,000 $48,000 17,500 29,500 24,000 40,000 28,500 48,500 $77,000 $125,000 $24,000 $18,000 $16,000 $67,000 If the company shifts its product mix to 3,000 standard units and 4,500 deluxe units, profit before tax will: Decrease by $12,000 Decrease by $22,000 Increase by $10,000 Increase by $135,000 o