Add a product line: manufacturer 39 7 Camilla's, a high-fashion dress manufacturer, is planning to market a nevw Camilla's supplies retailers primarily in the eastern states of Australia Four metres of material are required to l after cutting. The leftover material could also be used to manufacture a if the leftover material is used for the wra ay out the dress pattern. Some material that could be sold remains matching wrap and handbag. However, p and handbag, more care will be required in the cutting operation, hat dress sales will be 20 per cent g are available. The market research indicates that the wrap and ries with the dress. The combination of dresses, wraps and handbags hich will increase the cutting costs The company expects to sell 1 250 dresses. Market research reveals t higher if a matching wrap and handba handbag will be saleable only as accesso expected to be sold by retailers is as follows Percentage of total 70% Complete sets of dress, wrap and handbag Dress and wrap Dress and handbag Dress only Total 15% 9% 100% $120 for each dress. The cost of cutting the dress are not manufactured is estimated at $48 a dress, and the left-over material can be The material used in the dresses costs $30 a metre, or if the wrap and handbag sold for $12 per dress. If the wrap and handbag are manufactured, the cutting costs will i per dress and there will be no once they are cut are shown in the table below ncrease by $21.60 saleable remnants. The selling prices and the costs to complete the three items Unit cost to complete (excludes costs of material and cutting operation) Selling price per unit Dress Wrap Handbag $480.00 66.00 22.80 $192.00 46.80 15.60 Calculate Camilla's incremental profit or loss from manufacturing the wraps and handbags in conjunction with the dresses. Assume that Camilla's produces only sufficient product to meet sales demand. Required 1. 2. Identify any other issues that could influence Camilla's management in their decision to manufacture wraps and handbags to match the dresses