OrioleOrthotics Company distributes a specialized ankle support that sells for $30. The company's variable costs are $20per unit; fixed costs total $370,000each year.

Last year,Oriolesold42,000ankle supports. The company's marketing manager is convinced that a10% reduction in the sales price, combined with a $47,000increase in advertising, will result in a30% increase in sales volume over last year.

Compute the projected income.(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Projected income$

ShouldOrioleimplement the price reduction?

Oriole(select an option-SHOULD or SHOULD NOT) implement the price reduction because the estimated operating income is

(select an option LESS, MORE)than the current operating income.