A company produces toys. The following information is available:

Selling price per doll $26.40

Variable costs per doll $12.00

Current annual sales 80,000 units

Current fixed costs $360,000

The sales manager projects that next year a 10% reduction in selling price, combined with an increase of $50,000 in advertising

spending would result in an increase of 50% in unit sales. By how much will net income increase or decrease if they do so? Show work and forulas used