L&M Manufacturing produces a single product that sells for$16. Variable(flexible) costs per unit equal$11.20. The company expects the total fixed (capacityminus

related) costs to be$7,200 for the next month at the projected sales level of20,000 units. In an attempt to improveperformance, management is considering a number of alternative actions. Each situation is to be evaluated separately.

Suppose thatL&M Manufacturing's management believes that a$1,600 increase in the monthly advertising expense will result in a considerable increase in sales. How much must sales increase in a month to justify this additionalexpenditure?

A.

500 units

B.

334 units

C.

200 units

D.

None of the above is correct.