Bam corporation manufactures and sells oil filters. The selling price for these oil filters is $7.00, which is what BAM's competitors charge, as the oil filter is a commodity. Below are facts for BAM as follows:

-BAM desires a 20 percent return on its total assets, which are $2,500,000.

-BAM has a current sales volume of 600,000 units.

-Variable costs are $4.00 per unit, $2.00 for manufacturing and $1.00 for marketing and administrative costs.

-fixed costs are $800,000

a) Can they achieve its desired profit?

b) suppose that BAM follows a strategy of one of its competitors, which is to spend $100,000 on advertising so that there is more brand awareness. This would permit them to raise the selling price to $9.00 but their sales volume would decrease to 500,000 units. Will BAM be able to achieve its desired profit?