Falodas is experiencing erratic sales of its product - a special phone. This month it generated a loss of $30,000. Company sold 14,000 units for the month and has the following account balances for the income statement:

Sales (14,000 units) $490,000

Variable expenses $350,000

Fixed expenses $170,000

a. How many units need to be sold for the company to earn income before tax of $50,000?

b. Assume for this part only that Falodas's president believes a 10% decrease in the sales price and a $10,000 increase in the advertising costs will double the volume of sales from the 14,000 in the current month. If this is correct, what will Tyler report as the new net income or loss?