The Following Information Pertains to Ewing Company's Three Products -Assume That Product F Is Discontinued and the Space Is

The following information pertains to Ewing Company's three products: $\begin{array}{lrrrr}& \underline{\text { D }}&\underline{E} &\underline{F} \\\text { Unit sales per month } & \underline{900} & \underline{1.400} & \underline{800} \\\\\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \\\text { Variable costs per unit } & \underline{3.00} & \underline{9.00} & \underline{7.80} \\\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$(0.30\end{array}$


-Assume that product F is discontinued and the space is used to produce E.Product E's production is increased to 2,200 units per month,but E's selling price of all units of E is reduced to $10.20.What will be the effect on monthly profits?

A) decrease by $270
B) increase by $1,200
C) decrease by $2,070
D) increase by $2,640