Silencer Company sells a single product, mufflers for leaf blowers. The business profit calculation for last year is shown here:

Sales revenue (2000 units @ $25)	$ 50 000
Less: Variable costs	(20 000)
Contribution margin	$ 30 000
Less: Fixed costs	(22 000)
Profit	$ 8 000

Silencer has decided to increase the price of its product to $30 per muffler. The business believes that if it increases its fixed advertising (selling) cost by $3400, sales volume next year will be 1800 mufflers. Variable cost per muffler will be unchanged. a Using the above income statement format, show the calculation of expected profit for Silencers operations next year. b How many mufflers would Silencer have to sell to earn as much profit next year as it did last year? c Do you agree with Silencers decision? Explain why or why not