Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The companys average unit costs at this level of activity are given below:

Direct materials	$	9.50
Direct labor		10.00
Variable manufacturing overhead		2.80
Fixed manufacturing overhead		5.00
Variable selling expenses		1.70
Fixed selling expenses		4.50
Total cost per unit	$	33.50

The companys relevant range of production is 70,000 - 100,000 units. It believes that spending an additional $230,000 on advertising would increase unit sales by 25%. What is the financial advantage (disadvantage) of spending the additional money on advertising?

Multiple Choice

• $30,000

• $24,000

• $10,000

• $90,000