As manager of the production department, Raul is concerned about increasing direct material costs. Last year's profit of $38,800 resulted from sales of 5,400 units at a selling price of $120. Total fixed costs were $285,200. This year the company expects both overall sales volume and variable cost per unit to increase by 5%. With no other changes expected how much will the company's income increase or decrease compared to last year as a result of these changes.

What is company's income

-increased or decreased

-by $