MINICASE_3_1358 Dominion Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets the Standard, the Deluxe, and the Pro_that are widely used in amateur play. Selected information on the rackets is given below: Standard Deluxe Pro $40.00 $60.00 $90.00 Selling price per racket Variable expenses per racket: Production $22.00 $27.00 $31.50 Selling (5% of selling price) $2.00 $3.00 $4.50 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month Fixed production costs $120,000 Advertising expense 100,000 Administrative salaries 50,000 $270,000 Total Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 2,000 1,000 5,000 8,000 May 8,000 1.000 3,000 12,000 4. Compute the number of units Dominion Sports need to sell to break-even of each product. 13 Marks 5. The Marketing department believes that by increasing the advertising expense to $150,000 in May, it can increase sales of each product by 15%, would you suggest this increase of advertising expense, why? 13 Marks]