Revised Profit via Contribution Margin Analysis Steps:

• Last year's total contribution: 2000 × $50 =$100,000; fixed costs = $100,000 -$6,000 = $94,000.
• This year's units: 2000 × 1.10 = 2200.
• This year's contribution per unit: $50 × 1.05 =$52.50; total contribution: 2200 × $52.50 =$115,500.
• This year's fixed costs: $94,000 × 0.75 =$70,500; profit: $115,500 -$70,500 = $45,000.

Why A is correct:

• Matches the formula Profit = (Units × Contribution per unit) - Fixed costs, accurately applying all changes.

Why the others are wrong:

• B: Likely from dividing profit by 10 or ignoring volume increase, understating total contribution.
• C: Overstates by neglecting the 25% fixed cost reduction or misapplying contribution growth.
• D: Results from adding percentage increases incorrectly, like treating them as additive to profit directly.

Final answer: A