Question 3 (20 points) Problem 3: Codroy Dairy Farms produces locally-made dairy products from its own herd located in Tompkins, in Newfoundland's Codroy Valley. Its budget for 2021 is as follows: Cream Butter Cheese Sales 65,714 1,200,000 167,777 Variable expenses 25,714 800,000 97,777 Contribution margin 40,000 400,000 70,000 Fixed expenses Operating income Total 1,433,491 923,491 510,000 275,000 235,000 The budget assumes the sale of 20,000 tubs of cream, 100,000 blocks of butter, and 80,000 blocks of cheese. Required: a. (4 marks) What is the company's break-even point (in dollars) given the sales mix above? b. (12 marks) If the budgeted sales mix is maintained (i.e. the same relative proportion of cream, butter, and cheese), what is the total contribution margin and operating income if 300,000 units are sold? c. (4 marks) Codroy Dairy Farms is looking to increase sales. It has set a budget of $20,000 for advertising, but can only focus on one of its products. The marketing department feels that such an advertising campaign can increase sales of cream by 7,000 tubs, butter by 9,000 blocks, or cheese by 15,000 blocks. Should Codroy proceed with the advertising campaign, and if so, which product should it focus on?