P4-28, Multiple Changes in Profit Plans: Multiple Products Information on Guadalupe Ltd.'s three products follows: C Unit sales per month Selling price per unit. Variable costs per unit Unit contribution margin. 900 $10.00 (10.40) $ (0.40) 1,400 $15.00 (12.00) $ 3.00 900 $8.00 (4.00) $4.00 Required Determine the effect each of the following situations would have on monthly profits. Each situation should be evaluated independently of all others. SORE a. Product A is discontinued. b. Product A is discontinued, and the subsequent loss of customers causes sales of Product B to decline by 100 units. c. The selling price of A is increased to $11.00 with a sales decrease of 150 units. d. The price of Product B is increased to $16.00 with a resulting sales decrease of 200 units. However, some of these customers shift to Product A; sales of Product A increase by 140 units. e. Product A is discontinued, and the plant in which A was produced is used to produce D, a new prod- Tal cosuct. Product D has a unit contribution margin of $0.60. Monthly sales of Product D are predicted to be 600 units. MO f. The selling price of Product C is increased to $9.0, and the selling price of Product B is decreased questo $14.00. Sales of C decline by 200 units, while sales of B increase by 300 units