$6,000 is NOT the correct answer. Please help me find the correct answer. Required information[The following information applies to the questions displayed below.]Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company hascollected the following price and cost characteristics.Sales priceVariable costsFixed costs$Assume that the company plans to sell 7,000 units per month. 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 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 fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 20 percent higher thanprojected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Required ARequired B13 per unit3 per unit51,000 per monthComplete this question by entering your answers in the tabs below.Required CAnswer is complete but not entirely correct.increasesRequired DSuppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 20 percent higherthan projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By howmuch?Operating profit✔by $ 6,000< Required CRequired D >

Operating profit is calculated by deducting the fixed cost and variable cost from the sales revenues…

Answered: Warner Clothing is considering the…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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H. K 35 36 TABLE A TABLE B Annual Fixed Costs (TL) Marketing, Selling and Distribution Expenses Low Option High Option 725,000.00 37 Annually Estimated Annually Estimated Sales Administration Expenses 1,250,000.00 38 Sales 30,000.00 1,285.00 15,000.00 1,443.00 39 Price (TL) $4 Price (TL) 2$ R&D 379,000.00 40 Direct Fixed Costs 4,750,000.00 41 Materials Number Required Unit Costs (TL) Materials Number Required rqaaS 42 Stove 1 172.25 Stove 1 202.25 43 Oven 1 242.15 Oven 1 252.15 TAX RATE 44 Display Screen 45 Driver 1 19.25 Display Screen 2 36.24 2 18.10 Driver 2 18.10 20% 46 Electronic Card 1 11.97 Electronic Card Bluetooth 1 11.97 47 Bluetooth 1 11.16 1 11.16 48 Fan 2 7.99 Fan 8 7.99 49 Light Bulb 1 Light Bulb Smart Connectivity 4.99 5.99 50 39.99 51 Direct Labor Costs 85.32 52 Packaging Cost Per 49.27 Direct Labor Costs 10% Increase from LowOption's Direct Labor Cost Increase from LowOption's Packaging Cost 53 Packaging Cost Per Unit 4% 54 Instructions Answers