3 Amalfi Coast Company manufactures artistic mugs that are sold to wholesalers for 4.00 each. Variable and fixed costs are as follows: Variable Costs per Unit Fixed Costs per Month Manufacturing: Direct materials 0.60 Factory overhead 8,000 Direct labour 0.70 Selling and admin 6,000 Factory overhead 0.50 1.80 Total 14,000 Selling and admin 0.40 Total 2.20 Amalfi Coast Company produced and sold 10,000 mugs during March 2019. There were no beginning or ending inventories. Requirement a) Determine Amalfi Coast Company's monthly break-even point in units. 8 Marks b) If monthly sales increased by 500 mugs, what would be the change in Amalfi Coast Company's monthly profits? 5 Marks c) Amalfi Coast Company is planning to export some of their mugs to China next year. Because of customs duties, the company expects the actual earned profit to be reduced by 40% for those mugs. What sales volume in pounds is required to earn a monthly net income of 12,000 over the exported mugs? d) Discuss the main assumptions upon which Cost-Volume-Profit Analysis is based. 9 Marks