Gosford Rocks Ltd mines and distributes sandstone. Most of the companys sandstone is sold to contractors who use the product when constructing luxury houses. Carly, company CEO, believes the company needs to advertise to increase sales. She has proposed a plan to the other managers that Gosford Rocks spend $300000 on a targeted advertising campaign. The company currently sells 50 000 tonnes of sandstone for total revenue of $10000000. Other data related to the companys production and operational costs follow:

Direct labour	$3 000 000
Variable production overhead	400 000
Fixed production overhead	700 000
Selling and administrative expenses:
Variable	100 000
Fixed	600 000

REQUIRED:

a) Compute the break-even point in units (i.e. tonnes) for Gosford Rocks.

b) Compute the contribution margin ratio for Gosford Rocks.

c) If Carly decides to spend $300000 on advertising and the company expects the advertising to increase sales by $600000, should the company increase the advertising? Why or why not?