Note: Please show the workings as necessary. A sincere and complete answer would be rated positive. Thank you.

4) Data concerning Shanta Corporation's single product appear below: Selling price.. Variable expenses Contribution margin.. Per Unit $220 66 $ 154 Percent of Sales 100% 30% 70% Fixed expenses are $1,024,000 per month. The company is currently selling 8,000 units per month. Required: Management is considering using a new component that would decrease the unit variable cost by $6. But for the new component the marketing manager predicts that monthly sales would decrease by 300 units. That also decrease the monthly advertising cost of $22,000. Should the proposal be accepted? Show your work