Question: Under its current plan. Bern Industries expects to sell 12,000 units next year at a selling price of 150 per unit. Variable costs are expected

Under its current plan. Bern Industries expects to sell 12,000 units next year at a selling price of 150 per unit. Variable costs are expected to be $90 per unit and total fixed costs are expected to be 450000 The CEO of Bern is considering an alternative plan, under which Bern would reduce the seing price by 10% for $15 per unit) and spend $75,000 more on advertising. The CEO predicts that these actions will increase unit sales by 30%. Assuming the CEOs projections are correct, what effect will these changes have on Bern's operating income? Decrease by $93.000 ncrease by $141,000 ncrease by $91,000 Decrease by $18,000 None of the above

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