Manama Company each year normally produces and sells 80,000 units of its only product for $40 per unit. The companys average unit costs at this level of activity are given below:

Direct materials	$ 9.50
Direct labor	10.00
Variable manufacturing overhead	2.80
Fixed manufacturing overhead	5.00
Variable selling expenses	1.70
Fixed selling expenses	4.50
Total cost per unit	$ 33.50

The companys relevant range of production is 70,000 - 100,000 units. It believes that spending an additional $225,000 on advertising would increase unit sales by 25%. You have been selected to take your course training at this company. The company's Chief Financial Manager offered you to study this case and solve the following requirements:

1. Calculate the contribution margin per unit?

2. Calculate the total incremental contribution margin?

3. Calculate the financial advantage (disadvantage) of spending the additional money on advertising?

4. Based on your analysis in requirement 3, Would you recommend that Manama company to spend on the additional advertising and why?