Jumbo Co. sells a special toy product in Hong Kong. The cost information for the current year is as follows: Direct materials at $12 per pound 2 pounds per unit Direct labour at $10 per hour 4 hours per unit Variable manufacturing overheads $5 per direct labour hour Variable selling and administrative overheads $18 per unit Fixed manufacturing overheads $2,000,000 per year Fixed selling and administrative overheads $1,000,000 per year A supplier selling production machines has offered Jumbo Co. a new model of the machine which can improve productivity by reducing one hour of labour time per unit. The renting cost of this new machine will incur an extra cost of $45,000 per month. Currently the annual sales quantity is 60,000 units and the selling price is $300 each. Your manager is seeking your advice for the replacement of the machine. Required: (a) Calculate the change in Net Profit resulting from the replacement of the machine. Indicate whether it is an Increase or a Decrease in the Net Profit from the change. (15 marks) (b) Calculate the number of sales units that would give the same amount of net profit before and after the replacement of the existing machine. (15 marks)