Currently aCompany makes and sells 20,000 backpacks. The cost of making the backpacks are $15 and the company sells them for $20 and has fixed costs of $30,000. They are considering using a better material which would add $1 to the cost of the backpack. If they use the better material, they could sell the backpacks for $23 but could only sell 19000 backpacks. Should they make the change or continue to sell the original backpacks.

a. yes, revenue increases 37,000

b. no, variable cost increase 4,000

c. yes, since income increases 33,000

d. no, since the number of units sold decreases