QUESTION 10 Total 10 marks Marina Ltd is a manufacturer of swimwear. Due to increasing competition, the company's CEO, Peter, decided to launch an aggressive advertising campaign next year. The accountant has prepared the following data for Peter to make his decisions: Cost Schedules Variable costs Per Unit ($) Direct labour per swimsuit 24.00 Direct materials 12.00 Variable overhead 6.00 Variable cost per swimsuit 4200 Fixed costs Manufacturing $100,000 Selling 120,000 Administrative 1 16,000 $336,000 Selling price per swimsuit $70.00 Expected sales, 2014 $1 ,400,000 Required: a) Calculate the break-even point in units for 2014. b) C) d) Calculate how many units would have to be sold in 2014 to earn a target profit of $252,000. If the entity spends the additional $48,000 for advertising in 2014, calculate the break-even point in dollars required. Peter believes that to attain a target prot of $224,000 in the year 2014 additional selling expenses of $48,000 for advertising will be required in 2014, with all other costs remaining constant. Calculate the sales level in dollars for 2014 if the entity spends the additional $48,000. (2 marks) (2 marks)