2. Amalgamated Fenderdenters sales are $12 million. The company spends $3.7 million for purchase of direct materials and $3.4 million for direct labor; overhead is $3.5 million and profit is $1.4 million. Direct labor and direct material vary directly with sales, but overhead does not. The company wants to increase its profit by 50%. 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?