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Coronado's management is looking at longer term solutions to improve net income. One of the options it has reviewed will

increase fixed expenses by $$29,800$ while reducing variable expenses by $$2\mathrm{.}00$ per unit. Management feels that with these

changes, the price of the product could be reduced by $$1\mathrm{.}00$ per unit. The decrease in price will then result in an increase in unit

sales of $5\%.$ Compute the net income to be earned under this alternative. Do you recommend this option? Why or why not?

$($Round per unit calculations to $2$ decimal places, e$.$g$.15\mathrm{.}25$ and final answers to $0$ decimal places, e$.$g$.125.)$

Net Income

$

This option is

as it

Long term.