Andretti Company has a single product called a Dak. The company normally produces and sells 90,000 Daks each year at a selling price of $58 per unit. The companys unit costs at this level of activity are given below:

Direct materials	$	8.50
Direct labor		12.00
Variable manufacturing overhead		2.20
Fixed manufacturing overhead		5.00	($450,000 total)
Variable selling expenses		2.70
Fixed selling expenses		4.00	($360,000 total)
Total cost per unit	$	34.40

A number of questions relating to the production and sale of Daks follow. Each question is independent.

Required:

1-a. Assume that Andretti Company has sufficient capacity to produce 117,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 30% above the present 90,000 units each year if it were willing to increase the fixed selling expenses by $110,000. What is the financial advantage (disadvantage) of investing an additional $110,000 in fixed selling expenses?

1-b. Would the additional investment be justified?