03. The Luxury Cosmetics, Inc., manufactures a product which seils for $10. At present the company producers and sells 70,000 units per year. Unit variable manufacturing and selling expenses are $3.50 and $0.75 respectively. Fixed costs are $80,000 for factory overhead and $40,000for selling and administrative activities. The sales manager has proposed that the price be increased to $13. To maintain the present sales volume, advertising must be increased. The company's profit objective is 12 percent of sales. Required (a) Determine the additional expenditure the company can afford for advertising (b) Show the present and new break-even point in units and in dollars. (c) Study the Impact of change in the selling price on Contribution Margin, and Margin of Safety