A manufacturer of premium sweaters for animals. The company's managers would like to increase the annual operating income generated by their best selling sweater, Wavy, by $5,000. The product's sales staff is doubtful that the current customer base would accept a price increase. However, they are confident that the product's customer base can be expanded without incurring any additional costs. Management has concluded after consulting with key members of the product's manufacturing and sales teams that all costs for the product line are currently at the lowest possible level. The following data has been prepared for the Wavy line. Sales Price Per Unit: $15.00 Variable Costs Per Unit: $8.00 Unit Traceable Fixed Costs (At Current Annual Sales Volume): $2.50 Current Annual Sales Volume: 3,000 Given all of the above information, which of the following scenarios would you recommend to management to achieve their goal of increasing operating income for the Wavy line? Assume an annual relevant range of 5,000 Wavy sweaters.

A. Decrease unit variable cost by $1.67 per unit. No change in sales price, sales volume, or fixed costs.

B.Increase annual sales volume by 715 units. No change in sales price or costs.

C. Increase sales price to $16.67 per unit. No change in sales volume, variable costs, or fixed costs.

D. Decrease total fixed costs by $5,000. No change in sales price, sales volume, or unit variable costs.

E.None of the above are valid recommendations.