3 [4 Marks] The Enem Company is considering dropping its Optimist toy due to continuing losses. Revenue and cost data on the toy for the past year follow: Sales of 15,000 units 150,000 Variable expenses 120000 Contribution margin 30,000 Fixed expenses 40,000 Net operating loss (10,000) If the toy were discontinued, then Enem could avoid Rs.20,500 per year in fixed costs. (a) What would be the change in annual operating income from discontinuing the production and sale of Optimists? (1.5 Marks) (b) At what level of annual sales of Optimists (in units) should Enem be indifferent to discontinuing Optimists or continuing the production and sale of Optimists? (1 Mark) (c) Suppose that if the Optimist toy is dropped, the production and sale of other Enem toys would increase so as to generate a Rs.16,000 increase in the contribution margin received from these other toys. If all other conditions are the same, the change in annual operating income from discontinuing the production and sale of Optimists would be: (1.5 Marks)