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Refer to the original data and ignore question 4. Assume that the company sold 28,000 units last year. The sales manager is convinced that a

Refer to the original data and ignore question 4. Assume that the company sold 28,000 units last year. The sales manager is convinced that a 10% reduction in the selling price, combined with a $70,000 increase in advertising expenditures, would increase annual unit sales by 50%. What is the net operating income of last years operations without making suggested changes by the sales manager? What would the net operating income be if sale managers suggested changes were made?

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