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Waterway Company reports the following operating results for the month of February: sales 5930,000 (units 15,500); variable costs $530,100; and fixed costs $210.900. Management is

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Waterway Company reports the following operating results for the month of February: sales 5930,000 (units 15,500); variable costs $530,100; and fixed costs $210.900. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 2.4% with no change in total variable costs or units sold. Reduce variable costs to 53.40% of sales. 2. Waterway's management is looking at longer term solutions to improve net income. One of the options it has reviewed will increase fixed expenses by $24.900 while reducing variable expenses by $2.00 per unit. Management feels that with these changes, the price of the product could be reduced by $1.00 per unit. The decrease in price will then result in an increase in unit sales of 5%. Compute the net income to be earned under this alternative. Do you recommend this option? Why or why not? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to decimal places, e... 125.) Net Income This option is as it Long term

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