Question 3 Martin Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2020: $43.00 17.00 Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs 20.00 $80.00 Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs $2,620,000 545,000 735,000 $3,900,000 Selling price per pair of shoes Expected revenues, 2020 (51,900 units) Income tax rate $180 $9,342,000 40% Calculate the projected operating income before tax for 2020. Operating income before tax $ LINK TO TEXT LINK TO TEXT Calculate the break-even point in units for 2020. Break-even point units The company controller has set the revenue target for 2021 at $10,242,000 (or 56,900 pairs). He believes an additional marketing cost of $410,000 for advertising in 2021, with all other costs remaining constant, will be necessary to attain the revenue target. Calculate the operating income for 2021 if the additional $410,000 is spent and the revenue target is met. Operating income $