Rockster Company manufactures and sells game consoles. The company is in the process of preparing the contribution income statement for the next year. The key data are as follows: The company expects to sell 25,000 units next year though the company has the capacity to produce 30,000 units a year. (a) Use CVP analysis to calculate the unit contribution margin and break-even point in dollars. (6 marks) (b) Suppose the sales manager proposes to lower the selling price by 5%. This will result in an increase of 5,000 units in sales. Use CVP analysis to explain whether the company should go ahead with the proposal. Show workings. (6 marks) (c) Independent of Question 6b, suppose there is another new proposal by the production manager to reduce the fixed manufacturing costs by $140,000 and to reduce the variable manufacturing costs by 10% through improved production methods. Use CVP analysis to calculate the expected change in net income. Show workings. (6 marks) Suppose you can choose only one proposal - either by the sales manager or by the production manager. Use CVP analysis to explain which proposal you would recommend to the management. (7 marks)