The Windy Wharf, Inc. sells flotation devices for windsurfers. The shop currently sells 31,000 units a month for $21 each, has variable costs of $16 per unit, and fixed costs of $115,000. The Windy Wharf is considering increasing the price of its units to $24 per unit. This will not affect costs, but demand is expected to drop 10%. Should The Windy Wharf increase the price of its product?

• Yes; profit will increase $68,200.

• Yes, profit will increase $40,000.

• No, profit will decrease $40,000.

• No, profit will decrease $68,200.