help with 4a and b please!

G Problem 4-Cost/Volume/Profit (Alternative courses of Action): (25 points) Wayfair, Inc. is a maker of quality footwear. Management is considering two options to improve profits. They are (a) automate selected activities that will change Cost of Goods Sold, increasing fixed cost $100,000 and decreasing variable cost 25%; or (b) increase prices by 5%. 0 Required: 2 3 a. Use the table below and calcualte the new net income under (a) and (b). 4 5 Option (a) Option (b) 6 Current 2,000,000 8 9 Sales Cost of Goods Sold -Variable - Fixed Gross profit All operating expenses-fixed Net Income 20 700,000 300,000 1,000,000 600,000 400,000 1 22 24 b. What is your obvious choice-current (no change), Option (a), Option (b)