The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecast sales. The board of directors is very supportive of any initiatives that will lead to increased operating income for the company in the upcoming year. Waterways markets a simple water controller and timer that it mass-produces. During 2022, the company sold 350,000 units at an average selling price of $8.00 per unit. The variable costs were $1,820,000, and the fixed costs were $921,200.

If the average sales price per screen did not increase when the company began mass-producing the screen, what would be the effect on the company?