XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost: $10, and Sales (Units): 9,000. Anticipated Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one:

a. No, because the company will be worse off by $22,000.

b. Yes, the company will be better off by $6,000.

c. It is impossible to judge because additional information is needed.

d. No, because sales will drop by 3,000 units.

e. No, because the company will be worse off by $4,000.