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Required information The Foundational 15 (LO6-1, LO6-2, LO6-3, LO6-4, LO6-5) The following information applies to the questioRequired Information The Foundational 15 (LO6-1, LO6-2, LO6-3, LO6-4, LO6-5) The following information applies to the questio

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Answer #1
Selling price 71
Less: Variable cost per unit 42 =22+12+3+5
Unit Contribution margin 29
14
Loss in Contribution margin of West -377000 =13000*29
Increase in Contribution margin of East 52200 =36000*5%*29
Avoidable fixed selling and administrative expense 280000
Net change in Profit -44800
Profit will decrease by 44800
15
Increase in Contribution margin of West 75400 =13000*20%*29
Less: Advertising costs -44000
Net change in Profit 31400
Profit will increase by 31400
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