Hospital Supply, Inc. produced hydraulic hoists that were used by hospitals to move bedridden patients. The cost per unit of manufacturing and marketing a hydraulic hoist at the company's normal volume of 3,000 units per month are shown below.' Unit manufacturing costs:/ Variable materials Variable labor Variable overhead $550 8251 420 $ 1,795 $ 1,980,000 Fixed manufacturing overhead Unit marketing costs: Variable (at time of sale) Fixed marketing costs $ 2751 $2,310,000 The following questions refer to the data given above. Unless otherwise stated, assume there is no connection between the situations described in the questions; treat each independently. Unless otherwise stated, assume a regular selling price of $4,350 per unit. Ignore income taxes and other costs not mentioned. 2. Market research estimates that monthly volume could increase to 3,500 units, which is well within hoist production capacity limitations, if the price were cut from $4,350 to $3,850 per unit. Assuming the cost behavior patterns above, would you recommend that this action be taken? What would be the impact on income