Commercial Carpets manufactures custom mats. The details on its standard run of a $1$

$m2m$ mat is as follows:

The production manager believes a $$700$ fixed cost investment would reduce

variable costs by $$2/$unit$.$ Assuming no change to sales volume or selling price,

should the investment be made?

a$.$ Yes. The contribution margin will increase by $$620$ and Variable costs will

decrease by $$620$

b$.$ Yes. Variable costs will decrease by $$620$

c$.$ No$.$ Operating income will decrease by $$80$

d$.$ Yes. The contribution margin will increase by $$620$