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Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $24 per unit. Variable expenses are $12 per unit, and fixed expenses total $220,000

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Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $24 per unit. Variable expenses are $12 per unit, and fixed expenses total $220,000 per year. Its operating results for last year were as follows: Sales (24,000 units) $ 576, 000 Variable expenses 288,000 Contribution margin 288,000 Fixed expenses 220,000 Operating income $ 68,000The sales manager is convinced that a 10% reduction in the selling price, combined with a $32,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager's ideas are implemented, how much will operating income increase or decrease over last year? (Do not round intermediate calculations. Decrease amount should be input with a minus sign.) Show less A Increase (decrease) to operating income $ (33,000) XThe sales manager is convinced that a 10% reduction in the selling price, combined with a $32,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's operating income if his ideas are implemented? (Do not round intermediate calculations.) Operating income $ 35,000

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