KTR Company earns a $$10$ profit on each unit of manufactured goods, and it sells $20$ million units each year. KTR$$s income tax rate is $20$ percent. However, the jurisdiction in which KTR operates just increased the tax rate to $22$ percent for next year. KTR$$s owners are considering two alternatives. They could simply accept the $$4$ million tax increase as a reduction in their after$-$tax profit, or they could raise the price of each unit by $20$ cents, thereby increasing the profit per unit to $$10\mathrm{.}20.$ However, the marketing department estimates that the price increase could reduce annual sales to $19$ million units.

Required:

Calculate the taxable income, income tax costs, and after tax profit for each alternatives.

Which alternative is better for KTR$$s owners?