QUESTION THREE (10 marks) echo Co., a retailer of refubished w h en in operation for one year. In computers cost Techno S100 to refurbish. Variable costs, in addition to the purchas ecimo S100 to purchase and require 10 hours of labour time at S15 per hoti. To chase and require 1 wable costs, in addition to the purchase cost and the direct labour cost, equal Pulet the newly refurbished malers are sold to customers for $600. Rent and other fixed costs equal $90.000 per year. Last year the is equal $90,000 per year. Last year the comuy sold 360 computers which generated sales of $216,000 and operating income of $18,000: REQUIRED Calculate the company's breakeven point in mumber of computers and sales dollars b. Calculate the company's margin of safety last year in dollars and as a percentage of sales. c. Refer to the original data. How many computers would the company have to sell to earn income after faxes of $21.000? The company's tax rate is 30 percent. d. Refer to the original data. Techno management is of the opinion that spending $8,000 on radio and newspaper advertisements plus the payment of a S5 commission per computer sold would increase next year's sales to 400 computers. Should the company implement this plan? e Refer to the original data. Techno is considering selling refurbished cell phones, in additionto refurbished computers. They can purchase used cell phones for $25, refurbish them at a cost of $15 per phone and sell them for $60. The company does not expect to incur any additional fixed costs if they start selling refurbished cell phones. Techno anticipates that they will be able to sell 2,000 cell phones next year and computer sales will remain at 360 units. What will the company's breakeven point, in sales dollars, equal if they add the new product line