High School Traditions operates a shop that makes and sells class rings for local high schools. The following operating information is available: Average selling price per ring $250 Variable costs per ring Rings & stones $90 Sales commissions $18 Variable overhead $8 Annual fixed costs Selling expenses $42,000 Administrative expenses $56,000 Production expenses $30,000

C. (5 points) The firms marketing manager believes that by spending an additional $12,000 in advertising and lowering the unit selling price by $10, he can increase the number of rings sold by 25%. Current sales are 2,200 rings. Should these changes be made?