Answer:
Decrease of $40,800 after introducing new marketing policy
Explanation:
As per the data given in the question,
Profit = Sales - Total cost
= 9,000 × $100 - ( 9,000 × $20 + $625,000)
= $95,000
To calculate new profit:
New unit = 9,000 + 800 = 9,800 units
Selling price = $100 - $6 = $94 per unit
Fixed cost = $625,000 + $46,000
= $671,000
Now Profit = $94 × 9,800 - ($20 × 9,800 + $671,000)
= $54,200
Since, introducing the new marketing policy profit will be decreased = $95,000 - $54,200
= $40,800
Hence, There will be decrease of $40,800
