The company is planning to use a new material throughout $2023.$ This will reduce

variable costs by $10\%.$ Fixed costs are expected to remain unchanged.

As the factory's output is nearing its annual output capacity of $38,000$ units, the

company plans to increase the selling price by $5\%.$ This will decrease sales volume by

$20\%.$

Use cost$-$volume$-$profit analysis to determine whether the company should proceed

with the plan