1. Planning Profit and Cost Potential. Palo Alto Mills, Inc. is considering manufacturing and marketing a new type of hosiery. Market research studies point to a sales price of $12 per dozen. Cost studies show a variable manufacturing cost of $5.50 per dozen with a fixed manufacturing cost at $75,000 per year for every 150,000 dozen produced; i. e., fixed factory overhead would step up in $75,000 increments. Required: The amount available for marketing and administrative expenses for a planned profit contribution of $5 per dozen at an annual sales level of 150,000 dozen