Garrett Manufacturing sold 410,000 units of its product for 64 per unit in 2011. Variable cost per unit is 52 and total fixed costs are 1,640,000. a) Calculate the total contribution margin (in pounds) and operating profit. [3 marks] b) Garrett's current manufacturing process is labour intensive. Kate Wolf, Garrett's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to 4,100,000. The variable costs are expected to decrease to 50 per unit. Garrett expects to maintain the same sales volume and selling price next year. How would acceptance of Wolf's proposal affect the contribution margin (in pounds) and operating profit? [3 marks] c) Explain whether Garrett should accept Wolf's proposal. Discuss the factors that the management should consider. [4 marks]