Question 18 7 pts East West Company manufactures brooms, Walbert a large retail merchandiser, wants to buy 411.250 brooms from East West Company for $10 each. The brooms would carry Walbert's rame and would be sold in its stores, East West Company normally sells 470.000 brooms a year at $14 each. Its production capacity is a total of 587.000 units a year. Cost Information is as follows: Production costs Variable production costs: $9 per unit Fixed manufacturing overhead: ($1.880,000/470,000 units) - $4 per unit Selling and administrative expenses Fixed: ($1.410,000 / 470,000 units) - $3 per unit Walbert has indicated that the company is not interested in signing a contract for fewer than 411.250 brooms. Total fixed costs will not change regardless of whether the Walbert order is accepted By how much will EastWest Company's overall net income change if the Walbert order is accepted? EastWest Company net income will DECREASE by $1,060,000 East West Company net income will INCREASE by $1,060,000 EastWest Company net income will INCREASE by $411,250 EastWest Company net income will DECREASE by $ 411,250