Medbury Communications Systems $($MCS$)$ produces mobile radios for arctic and other harsh environments. The costs to manufacture

and market the radios at the company's normal quarterly volume of $14,160$ units are shown in the following table: Complete this question by entering your answers in the tabs below.

Req A$2$

Req B

Market research estimates that quarterly volume could be increased to $16,520$ units, which is well within production capacity limitations if the price were cut from $$600$ to $$525$ per unit. Assuming that the cost behavior patterns implied by the data in the table are correct.

A$1.$ What would be the impact on quarterly sales, costs, and income? $($Select option "increase" or "decrease", keeping before price reduction as the base. Select "none" if there is no effect.$)$

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