Billings Company has developed the following budgeted income statement: Sales Revenue (2,900 units $10 sales price) Total Variable Expenses (2,900 $4 per unit) Contribution Margin Fixed Expenses Net Income $ 29,000 (11,600) 17,400 (8,700) $ 8,700 The Company is experimenting with new engineering techniques and believes it can reduce variable cost to $3.0 per unit and significantly improve the product. The innovations would double fixed costs but the company expects to be able to increase sales to 4,200 units. If this strategy is pursued the company's budgeted net income will: Multiple Choice increase by $3,300. increase by $12,000. decrease by $4,500