I am working on a question asking for the change in operating income with an addition of advertising and a change in units sold. Current income statement is:

Sales $37,500.00 12.50 per unit

VC

COGS 15,0000 5.00 per unit

Wages 4,500 1.50

Shipping 1650 0.55

Advertising 1200 0.40

Total VC 22,350.00

CM 15,150

FC

Rent 1,500

Wages 500

Utilities 750

Advertising 200

Insurances 252

Total FC 3,535.00

OI 11,615.00

Blake is evaluating two options to increase the number of mascots sold next month. First, he believes he can increase sales by advertising in the university newspaper. Blake can purchase a package of 12 ads over the next month for a total of $1,500. He believes the ads will increase the number of stuffed mascots sold from 1,500 to 2,200.