The following monthly data in contribution format are available for the MN Co. and its only product: Total Per Unit Sales. $83,700 $279 Variable expenses. 32,700 109 Contribution margin 51,000 $170 Fixed expenses. 40,000 Net operating income. $11,000 The Company is currently using 70% of its available capacity. selling 300 units of product per month.

c. Management wants to increase sales and feels this can be done by cutting the unit selling price by $22 and increasing the advertising budget by $20,000 per month. Management believes that these actions will increase unit sales by 50%. Should these changes be made?