Hydra Inc. makes swimwear for professional athletes. Analysis of the firms financial records for the current year reveals the following:

Unit Swimsuit Selling Price	$78
Variable Swimsuit Costs
Direct Material	$30
Direct Labor	$16
Variable overhead	$8
Annual Fixed Costs
Manufacturing	$12,000
Selling and Administrative	$25,000

Answer each question independently.

4A) Hydra is considering upgrading to faster sewing machines that will save $7 per swimsuit in variable costs for the entire production but will raise annual fixed cost by $47,500. If the existing equipment is upgraded, the company expects to make and sell an additional 6,500 swimsuits over its current sales of 10,000 units. If this investment is made, by how much will its income increase (decrease)?

4B) A marketing consultant told Hydra managers that they could increase the number of swimsuits sold by 33% if the selling price was reduced by 20% and the company spent an extra $25,000 on advertising. The company has been selling 5,000 swimsuits. If this investment is made, by how much will its income increase (decrease)?

please show all work and equations