A company has two product lines, shoes and hats. Costand revenue for each line for the current month follows:

Product lines

shoes hats

sales...................................... $ 800,000 $450,000

variable costs as a percentage ossales........ 55% 28%

fixed costs traceable to productlines......... $200,000 $ 250,000

The company incurs monthly fixed costs of $ 100,000 common toboth product lines.

** assume that a marketing survey shows that a $75,00 monthlyadvertising campaign focused on either product line should increasethat product line's monthly slaes by apprpx. $150,000. Do yourecommend this additional advertising for either or both productlines? Show computations.