Sports Specialty Products, Inc. manufactures and distributes various sports memorabilia
products. A contribution income statement is given below:
		Total	Per Unit
	Sales	$750,000	$3.75
	Variable Expenses	$450,000	$2.25
	Contribution Margin	$300,000	$1.50
	Fixed Expenses	$200,000
	Net Operating Income	$100,000
Required:
1. Calculate Break Even Point in Units and Sales
2. The Sales manager is convinced that a $.25 reduction is selling price will increase sales by 15,000 units.
He realizes this will require an increase of $12,000 in advertising costs. Would you recommend this course of action.
Why or why not?