SMC, Inc., is a producer of hand-held electronic games. Its 2006 income statement was as follows:== Question 1: Evaluate the following independent cases, and determine SMC’s 2007 budgeted profit or loss in each case. (Assume that 2006 figures apply unless stated otherwise.)1.1: Fixed costs increase $150,000. 1.2: Fixed costs decrease $100,000. 1.3: Variable costs increase $3 per unit. 1.4: Variable costs decrease $4 per unit. 1.5: Sales price increases $5 per unit. 1.6: Sales price decreases $5 per unit. 1.7: Sales volume increases 25,000 units. 1.8: Sales volume decreases 15,000 units. 1.9: Sales price decreases $4 per unit, sales volume increases 40,000 units, and variable costs decrease by $2.50 per unit. 1.10: Fixed costs decrease by $100,000, and variable costs increase $4 per unit. 1.11:Sales volume increases 30,000 units, with a decrease in sales price of $2 per unit. Variable costs drop $1.50 per unit, and fixed costs increase $50,000. p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px ‘Helvetica Neue’} p.p2 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px ‘Helvetica Neue’; min-height: 14.0px}

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