Q2 : The Alpha Specialty , Inc. manufactures a product which sells for BD5 . At present the company produces and sells 50,000 units per year . Unit variable manufacturing and selling expenses are BD 2.50 and BD 0.50 , respectively . Fixed costs are BD 70,000 for factory overhead and BD 30,000 for selling and administrative activities . The sales manager is proposing that the price be increased to BD 6. To maintain the present sales volume , advertising must be increased . The company's profit objective is 10 percent of sales . a . Calculate the additional expenditure the company can afford for advertising . [ 2 marks ] b . Calculate the new break - even point in units and Bahraini Dinars , using BD 6 selling price and the additional outlay from part a . [ 2 marks ]