Question 5 (10 marks) D Spare Pte Ltd. produces sells tool kit sets for people to Do It Yourself, below are details of the tool kit set: $100 Selling price per set Variable cost per set: Bolts and nuts $45 S 2 Casing and carton box Labour cost $1 ho Sales commission $ 2 Fixed manufacturing cost per year $50,000 Customer service and office expenses per year. $100,000 Sales in 2020 5,000 sets Required: Required: a) Calculate the contribution margin per set (1 mark) b) Calculate the breakeven point of D Spare Pte Ltd product in sets and sales dollars for 2020 (2 marks) c) d) Calculate the margin of safety in sales dollars. (1 mark) For year 2021, D Spare Pte Ltd is planning a new online promotion campaign that costs $30,000. Market research estimates this campaign will lead to a sales increase of 10% over year 2020's sales, however in order to be more competitive in the market, management has requested for the unit selling price to drop by $2 per set. Calculate the new breakeven units and the profit from the increase sales after deducting all the related expenses for year 2021. (4 marks) Discuss whether or not D Spare Pte Ltd should proceed with the new online promotion campaign for 2021. (2 marks)