More required At a sales level of 25,000 units, what maximum amount can be spent on advertising if a 2021 net income of RM108,450 is desired?(4 marks)e. Cost volume profit analysis assumes that costs can be accurately divided into fixed and variables categories. Do you agree? Briefly explain.(4 marks)

Question 1 Hani Craft Enterprise manufactures quality handmade mugs. The company has had a steady growth in sales for the past 5 years. However, increased competition has led Puan Hani, the owner, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, En Kamal, the company's controller has prepared and presented to Puan Hani with the following data for the current year, 2020: Variable cost per unit Direct materials RM 3.00 Direct manufacturing labour RM 8.00 Variable overhead (Manufacturing, marketing, distribution, RM 7.50 and customer service) Total variable cost per unit RM 18.50 Fixed Costs Manufacturing RM 20,000 Marketing, distribution, and customer service RM 194,500 Total fixed costs RM 214,500 Selling price RM 35.00 Expected sales 22,000 unit Required: a. Prepare a contribution income statement for the year 2021. (7 marks) b. Determine the break-even point in unit for the year 2021. (4 marks) c. Puan Hani has set the revenue target for 2021 at RM875,000. She believes an additional marketing cost of RM16,500 for advertising with all other costs remain constant, will be necessary to attain the revenue target. Calculate (i) the net income for 2021 and (ii) the break-even point, if the additional marketing cost is spent and the revenue target is met