Olive, Inc. is a company that produces and sells a single product. It has provided its contribution format income statement for November.

Based on 500 units (relevant range 500 to 1,500)
Sales		$	10,500
Variable expenses			5,000
Contribution margin			5,500
Fixed expenses			2,250
Net operating income			$3,250

The company is considering increasing its advertising expenses by $2,000 for a new ad campaign and projects that this will result in an increase in sales by 300 units.

Question: Should the company adopt the new ad campaign?

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