Question: please explain how to solve question D. Required information [The following information applies to the questions displayed below) Warner Clothing is considering the introduction of

Required information [The following information applies to the questions displayed below) Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. Sales price Variable costs Sed costs 14 per unit 2 per unit 13.000 per month Assume that the company plans to sell 6,000 units per month. Consider requirements (6).(d, and (independently of each other. Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 40 percent? c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 40 percent? d. Suppose that foxed costs for the year are 20 percent lower than projected, and variable costs per unitare 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? 1. VOUS LICHIOLLICITY MUM VOLQUIEL per un UCL Case wy LU MEILE COSE WELCE d. Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Operatina petit increases by 7.200
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