Cherry Company intends to stop marketing its outdated locket line, but management wants some additional data prepared before a final decision is made. The following data relates to the locket line: Selling price of one locket : $700 Variable cost to produce one locket : : $240 Fixed cost : $1,500,000 Sales have been dropping and the sales for the year 2019 are 500 lockets. Required: (a) (3 marks) (b) (2 marks) (c) Using the contribution margin approach, calculate the units of lockets needed to sell to break even Using the contribution margin approach, calculate the sales dollars needed to earn to break-even. Assuming Cherry Company need to earn a profit of $150,000 for its locket line, calculate the units of lockets that need to be sold (show the equation method in your calculation) Using the equation method, assuming variable costs increased by $10 per locket, how many lockets must be sold in a year to earn profits amounting to $50,000?. (2 marks) (d) (3 marks) Part 2 Bellaboo Clothing Design sells skirts for girls and women. The average selling price and the variable cost for each product are as follows: Girls' Skirts Women's Skirts Selling Price $60 $80 Variable Costs $42 $56 The fixed cost are $38,400. The sales mix of girls' to women's skirts is 35% / 65%. Which means 35% of the skirts sold are girls' skirts and 65% are women's skirts. Required: a) What is the breakeven point in units for each type of skirt? (6 marks)