Baby Clothes sells childrens clothes in bulk to retailers in all over UK. The price of a shirt is $40, with a variable cost of $26 per unit. The company has fixed manufacturing cost of $1,600,000 and fied marketing cost of $650,000. The commissions for wholesalers are 10% of the revenue. The company has an income tax rate of 30%. 1. How many clothes must the Baby clothes sell in order to break even? 2. How many clothes must be sold to achieve: a. Target operating income of $600,000? b. Target net income of $600,000? 3. How many clothes must Baby clothes sell to get the net income of section 2b if: (each of the following condition is calculated separately) a. The contribution margin per unit increased by 15%. b. The selling price increased to $45 c. The company outsource the manufacturing to an overseas company, resulting in an increase in variable cost per unit by $30 and saving 50% of fixed production cost..