Homework Answers
| Current | Proposed | |
| Sales | (50*600)=30,000 | (46*660)=30360 |
| Variable expenses | (20*600)=12000 | (20*660)=13200 |
| Contribution margin | 18000 | 17160 |
Hence decrease in profits=18000-17160
=$840
NOTE:Fixed costs changes are not taken into account as they are unknown.
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