A factory is producing 400 Christmas ornaments at the moment, where their average total cost is $0.85 and their average variable cost is $0.65. When their output level rises to 525 ornaments, their average variable cost is $0.48.

• The firm's total cost of producing 400 Christmas ornaments is $ and the total cost to produce 525 Christmas ornaments is $ . Round to the nearest dollar. Do not include the $-sign.
• The firm is currently producing 525 ornaments, with marginal cost equal to $0.42. If their goal is to produce the output level associated with the lowest average total cost, the firm should their output level. Choose from: increase, decrease, maintain.