6) Increase Fixed Costs: Dorilane's management is also considering purchasing additional advertising for $300,000. Note - Consider this increase to fixed costs independently of the changes analyzed previously. (Use concepts covered in Lecture Packet 1.2 as reference) a) How many additional units will Dorilane need to sell to recover the $300,000 of advertising cost? b) Marketing studies suggest that sales will increase by 1,000 units a year, what will the new Net Operating Income be? c) Should the company spend the $300,000 on advertising? Why or why not? Answer in 30 to 50 words. d) Marketing studies suggest that by spending $3,000,000 on an expanded national advertising campaign targeting new regional markets, the company could double their annual sales. Note Consider this increase to fixed costs independently of the changes analyzed above. How much Net Operating Income would Dorilane's expect assuming they spent $3,000,000 on advertising and doubled their sales? e) Would you recommend Dorilane's pursue the expanded advertising campaign? Answer in 30 to 50 words and identify at least two issues the company should consider when making the decision. 6) Increase Fixed Costs: Dorilane's management is also considering purchasing additional advertising for $300,000. Note - Consider this increase to fixed costs independently of the changes analyzed previously. (Use concepts covered in Lecture Packet 1.2 as reference) a) How many additional units will Dorilane need to sell to recover the $300,000 of advertising cost? b) Marketing studies suggest that sales will increase by 1,000 units a year, what will the new Net Operating Income be? c) Should the company spend the $300,000 on advertising? Why or why not? Answer in 30 to 50 words. d) Marketing studies suggest that by spending $3,000,000 on an expanded national advertising campaign targeting new regional markets, the company could double their annual sales. Note Consider this increase to fixed costs independently of the changes analyzed above. How much Net Operating Income would Dorilane's expect assuming they spent $3,000,000 on advertising and doubled their sales? e) Would you recommend Dorilane's pursue the expanded advertising campaign? Answer in 30 to 50 words and identify at least two issues the company should consider when making the decision