Charleston Company produces a headset for kids. The following unit cost information is available: Selling price per game $ 30.00 Variable costs per game $ 18.00 Current annual sales 80,000 units Current fixed costs $360,000 The sales manager proposes that for next year, Charleston should reduce the selling price by 5%, increase the quality of direct materials, and increase advertising spending to drastically increase unit sales. The manager expects the following: Proposed new price $28.50 Required increase in advertising spending $ 20,000 New Variable costs per game $ 20.00 40% Increase in unit sales 12 How will net income be impacted? A. Net income will increase by B. Net income will decrease by C. Net income will increase by D. Net income will decrease by E. None of the Above $ 8,000 $ 28,000 $ 12,000 $ 20,000