Question 4 (3 points) Cool! Industries manufactures three different models of mini refrigerators. Information on the models is as follows: Dorm Model Hotel Model Office Model Total Sales $85,000 $280,000 $185,000 $550,000 Variable costs 45,000 192,000 143,000 380,000 12,000 20,000 8,000 40,000 Direct fixed costs Allocated fixed costs 23,000 23,000 23,000 69,000 Profit $5,000 $45,000 $11,000 $61,000 Cool! is considering dropping the Dorm Model even though it is profitable. Management is concerned that future sales of the product will be impacted by the likelihood that fewer students will live in dorms during the upcoming fall semester. The elimination of the Dorm Model will have no effect on sales of the other two models. By how much will Cool!'s profit change if the Dorm Model is eliminated? A) Decrease by $28,000 OB) Decrease by $5,000 OC) Decrease by $85,000 OD) Increase by $5,000