Old state Manufacturing classifies all costs directly related to the manufacturing of its product as product costs. These costs are inventoried and later expensed as costs of goods sold when the product is sold. All other expenses, including finished goods warehousing costs of $3,630,000 are classified as period expenses. Higgins had suggested that warehousing costs be included as product costs because they are"definitely related to our product." The company produced 220,000 units during the period and sold 190,000 .units. As the controller reworked the numbers, she discovered that if she included warehousing costs as productcosts, she could improve operating income by $495,000. She was also sure these new numbers would make Higgins happy. Show numerically how operating income would improve by $495,000 is Higgins correct in his justification that these costs are definatley related to our product. 2.by how much will Higgins profit personally if the controller makes the adjustments in requirement 1 3. what should the plant controller do?