4. Refer to the original data. Thaddeus Company's board of directors believes that the company's problem lies in inadequate promotion. By how much can advertising be increased and still allow the company to earn a target profit of 4.5% on sales of 60,000 units? /4/20 Sales (45,000 units at $10 per unit) $450,000 $90,000 Less cost of good sold: Direct materials Direct labor Manufacturing overhead Gross margin 78,300 98,500 266,800 183,200 Less operating expenses: Selling expenses: Variable: Sales commissions Shipping $27,000 5,400 32,400 120,000 Fixed (advertising and salaries) Administrative: Variable (billing and other) Fixed (salaries and other) Net operating loss 1,800 48,000 202,200 ($19,000)