$1\mathrm{.}5$ Amalgamated Fenderdenter's sales are $$10$ million. The company spends $$6\mathrm{.}4$ million for purchase of

direct materials and $$6\mathrm{.}6$ million for direct labor; overhead is $$6$ million and profit is $$1,000,000.$ Direct

labor and direct material vary directly with sales, but overhead does not. The company wants to double its

profit.

a$.$ By how much should the firm increase annual sales?

b$.$ By how much should the firm decrease material costs?

c$.$ By how much should the firm decrease labor cost?