5. Original March: P= Net Income= ($30,899) Net Income = (205 intracompany usage hours x $400 an hour) + ($800 Price of commercial sales per hour x 138 commercial revenue hours)- (361 revenue hours x $28.7 variable costs) - $212,939 fixed costs) 82,000 + 110,400 - 10,360.7 - 212,939 = For option 1: P=205(400)+1000(96.6)-301.6(28.7) -212,939= -42,994.92 For option 2: P=205(400) +600(179.4)-384.4(28.7) -212,939= -34,331.28 For option 3: P=205(400) +800(179.4)-384.4(28.7) -212,939 = 1548.72 In conclusion, for option1 and 2, both will decrease in net income. For option3, net income will increase to a benefit amount. However, if the promotion expense is equal to or less than 1548.72, this option should be taken consideration