5 (Cost-Volume- Analysis) 20 marks Z company, maker of high quality speciality USB keys has experienced steady growth over the last six years. However, increased competition has led the President of the company, to believe that an aggressive campaign is needed next year to maintain the company's growth. The company's accountant has presented the following data for the year 2019, for use in preparing the next year's advertising campaign. Cost Schedules Variable costs I Direct labour per USB Unit $16 Direct materials $8 Variable overhead $6 Variable cost per unit $30 Fixed costs Manufacturing Selling Admin Total fixed costs Selling price per bulb Expected sales 2019 (40,000 units) $50,000 $80,000 $140,000 $270,000 $50 $2,000,00 0 The president has set the sales target for year 2020 at $2,200,000 (44,000 units) Required: a) What is the projected operating income for 2019? b) What is the contribution margin per unit for 2019? c) What is the break-even point in units for 2019? d) To attain the sales target in the year 2020, the company must incur an additional selling expense of $20,000 for advertising in year 2020. With all other costs remaining constant. What will be the break-even point in sales dollars for 2020 if the company spends additional $20,000 5 Head