Kim Ltd produces and sales men shirt. Kim plans to produce new product for next year and has estimated costs below:

Expected Variable Cost per unit
Direct materials	$15.00
Direct labour	8.18
Manufacturing supplies	1.92
Selling expenses	4.90
Total	$30.00
Selling price per unit	$60
Annual Fixed Costs
Taxes on property	$9 870
Depreciation on building	22 920
Advertising	40 840
Others	4 970
Total	$78 600

Required (show your working):

Assume that income tax rate is 25%, compute the number of units that must be sold to earn a profit after tax of $67,500.	(5 marks)
If Kim Ltd plans to run new advertising campaign and at the same time reducing sales price to $55 per unit. By doing so Kim Ltd expects that the sales will increase by 5 000 units and increase the profit before tax $120,000. You are required to determine how much the amount of additional advertising cost needs to spend for these purposes.	(5 marks)