Alvarez Company is facing an $$8$ increase in the variable costs of producing one of its products for the upcoming

year. As a result, the sales manager has made a proposal to increase the sales price of the product while increasing

the advertising budget at the same time. The sales price increase will lower sales volume, but the other changes

may help the company maintain its profit margin. Alvarez has provided the following information regarding the

current year results and the proposal made by the sales manager:

$29$