Cheaney, Manufacturing produces a single product that sells for $200. Variable costs per unit equal $50. The company expects total fixed costs to be $120,000 for the year at the projected sales level of 2,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. 32. Suppose that management believes that a $24,000 increase in annual advertising expense will result in an increase in sales equal to 180 units. What is the advantage (or disadvantage) of this proposal? a. advantage $3,000 b. disadvantage $15,000 c. advantage $12,000 d. none of the above 33. Suppose that management believes that a 20% reduction in the selling price will result in a 20% increase in sales. If this proposed reduction in selling price is implemented, a. net income will decrease by $36,000. b. net income will increase by $36,000. c. net income will decrease by $80,000. d. net income will increase by $44,000. Channa Manufacturing