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Exercise $3-33$ and $3-34($Algo$)($LO $3-1)$

$[$The following information applies to the questions displayed below.$]$

Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics:

Exercise $3-34($Algo$)$ Basic Decision Analysis Using CVP $($LO $3-1)$

Assume that the company plans to sell $76,600$ units annually. Consider requirements $(b),(c),$ and $(d)$ 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 $10$ percent?

Note: Do not round intermediate calculations.

c$.$ What is the impact on operating profit if variable costs per unit decrease by $20$ percent? Increase by $10$ percent?

Note: Do not round intermediate calculations.

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?

Note: Do not round intermediate calculations.

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