Question 3 Malboro Company (Pty) Ltd provided the following information (15 marks) Projected Income Statement for the Current Year Ending December 31 Sales (12 000 units) R240 000 Loss variable costs Vanable manufactunng costs R60 000 Variable selling costs R36 000 Total variable costs R96 000 Contribution margin R144 000 Less fixed costs Fixed manufacturing costs R85 000 Fixed selling and administrative costs R35 000 Total fixed costs R120 000 Operating income R24 000 Required: a) Determine the break-even point in units and Rand value (6) b) The sales manager believed the company could increase sales by 1 000 units of advertising expenditures were increased by R15 000 By how much will operating income increase or decrease of the advertising is increased as suggested? (6) c) What is the maximum amount the company could pay for advertising of the advertising would increase sales by 1 000 units? (3)