Thomas Corporation developed the following income statement using a contribution margin approach:

Thomas Corporation Projected Income Statement For the Current Year Ending December 31
Sales				$750,000
Less variable costs:
	Variable manufacturing costs		$280,000
	Variable selling costs		120,000
		Total variable costs		$400,000
Contribution margin				$350,000
Less fixed costs:
	Fixed manufacturing costs		$130,000
	Fixed selling and administrative costs		80,000
		Total fixed costs		$210,000
Operating income				$140,000

The projected income statement was based on sales of 100,000 units. Thomas has the capacity to produce 120,000 units during the year.

Required:

A.	Determine the break-even point in units.
B.	The sales manager believes the company could increase sales by 8,000 units if advertising expenditures were increased by $22,000. By how much will income increase or decrease if this plan is put into effect?
C.	What is the maximum amount the company could pay for advertising if the sales would really increase by 8,000 units?