Question Three: (15 marks) (ABC) Company produces a suitcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes. Sales price $ 40.00 Variable cost of goods sold 12.00 Variable selling expenses 10.60 Variable administrative expenses 3.00 Annual xed expenses Overhead $7,800,000 Selling expenses 1,650,000 Administrative expenses 3,150,000 (ABC) can produce 1.5 million cases a year. The projected net income for the coming year is expected to be $1.8 million. (ABC) is subject to a 40% income tax rate. During the planning sessions, (ABC)'s managers have been reviewing costs and - expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and that xed administrative expenses will increase by $15 0,000. All other costs and expenses are expected to remain the same. Required: a. What amount of sales revenue will (ABC) need to achieve in the coming year to earn the projected net income of $1.8 million? b. What price would (ABC) need to charge for the suitcase in the coming year to maintain the current year's contribution margin ratio