Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volurme of 6,000 units per month are shown in the following table: Unit manufacturing costs $ 58 83 Variable materials Varlable labor Variable overhead Ftxed overhead 68 $242 Total unit manufacturing costs Unit marketng costs Fixed TA Tolal unit markeling cosls Tolal unit costs S 353 Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of 386 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself. a. Market research estimates that volume could be increased to 7,0CO units, which is well within production capacity limitations if the price were cut from $386 to $341 per unit. Assume that the cost behavior pattems implied by the data in the table are correct. a-1. What would be the impact on monthly sales, costs, and income? (Select option "increases" or "decrease", keeping price before reduction as the base. Select "none" if there is no effect.) Before Price Reduction After Price Reduction 341 7,000 Sales price 3B8S 6,000 2,387,000S 71,000 ncrease 174,00 increase 33,000 increase 2,316,000 S 1,218,00 Variable manufacturing costs Variable marketing costs Contribution margin Foxed manufacturing costs Fixed marketing sts Income 1.044,000 198,000 1,074,000 408,000 488,000 938.000 408,000 488,00 82,000 (136,0001|decrease Inone 198,000 S decrease 136.000 a-2. Would you recommend taking this action? Yes No