Veronic Company sells shoes for an average of $100 per pair. Variable manufacturing costs in 2022 were $220,000 and variable selling costs were $20,000. Total sales in 2022 were $600,000. The total fixed costs of $160,000 were 80% for manufacturing and 20% for selling. The following changes are being contemplated: reducing the sales price by $8 per unit, with an expected 20% increase in pairs of shoes, and increasing fixed advertising costs by $3,000.

a. Should the proposed changes be made to the existing shoe line?

b. Give three qualitative considerations that you believe are relevant, should be identified, and estimated.