The officers of Bradshaw Company are revicwing the profitability of the company's four products and the potential effect of several proposals for varying the product mix. An excerpt from the income statement and other dats wassan... income taxes. B B E E 2. 1. If Product ROMANO is discontinued, the effect on hocome (loss) before taxes will be: A. $900 increase B. $4,194 increas C. $12,600 increase D. $1,368 increase E. None of the above . If the sales price of Product ROMANO is increased to $8 with a decrease in the number of units sold to 1,500 , the effect on income (IOss) before taxes will be A. $2,850 decrease B. $600 decrease $7/ unit 48 C. $1,650 increase D. $2,199 increase 15008=12,000= sales 9750+1500=Exp= (B) None of the above $600 decrease 11250 (3) Part of the plant in which PENN is produced can easily be adapted to the production of STATION. However, changes in quantities may make changes in sales prices advisable. If production of PENN is reduced to 500 units (to be sold at $12/ unit) and production of STATION is increased to 2,500 units (to be sold at $10.50/ unit). the total effect on income (loss) before taxes will be: A. $1,765 decrease B. $250 increase C. $2,060 decrease D. $1,515 decrease E. None of the above 8865 
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