Problem 2 -Part C. Assume that MN Company is currently selling 300 units of Product SD per month. Management wants to increase sales and feels this can be done by cutting the selling price by $22 per unit and increasing the advertising budget by $20,000 per month. Management believes that these actions will increase unit sales by 50 percent. Should these changes be made? Problem 2. (CVP Analysis) The following monthly data in contribution format are available for the MN Company and its only product, Product SD: 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 produced and sold 300 units during the month and had no beginning or ending inventories.