[The following information applies to the questions displayed below! Raylok Incorporated has invented a secret process to improve light intensity and, as a result, manufactures a variety of products related to this process Each product is independent of the others and is treated as a separate profluloss division Product (division managers have a great deal of freedom to manage the divisions as they think best. Folure to produce target divisional income s dealt with severely, however, rewards for exceeding one's profit objective are, as one division manager described them, lavish The DimLok Division seils an add-on automotive accessory that automatically dies a vehicle's headlights by sensing a certain intensity of light coming from a specific direction. Dimiok has had a new manager in each of the 3 previous years because each manager failed to reach Royl.ok's target profit level Donna Bares has just been promoted to manager and is studying ways to meet the current target profit for Dimlok. DimLok's two profit targets for the coming year are $1200.000 (20% return on the investment in the annual fixed costs of the divisions and $25 (pro-tax) profit for each DimLok unit sold. Other constraints on the division's operations are as follows: Production cannot exceed sales because Raylok's corporate advertising program stresses completely new product models each year, although the models . Dimloks selling price cannot vary above the current setting price of $230 per unit but may vary as much as 10% below $230$007 - 230/unit A division manager con elect to expand foed production or selling facilities, however, the target profit objective related to fixed costs is ncreased by 20% of the cost of any such expansion. Furthermore, o manager cannot expand food facilities by more than 30% of existing food cost levels without approval from the board of directors. Donna is now examining data gathered by her staff to determine whether Dimiok can achieve its target profits of $1.200.000 and $25 per unit. A summary of these reports shows the following: Last year's sales were 36,000 units at $230 per unit. Dim.ok's current manufacturing facility capacity is 46.000 units per year, but can be ncreased to 92.000 units per year with an increase of $4060.000 Present variable costs amount to $80 per unit, but Dimlok's vendors are willing to offer direct materials discounts amounting to $45 per unit, beginning with unit number 66,001 Seles can be increased up to 112,000 units per year by committing large blocks of product to institutional buyers at a discounted unit price of $185. However this discount applies only to sales in excess of 46.000 units per year. Donna believes that these projections are reliable and is now trying to determine what DimLok must do to meet the profit objectives assigned by a by Raycok's board of directors ex: 10_05_2020_0_cs-222202 Award: 5.00 polnts Required: 1. Determine the dollar amount of DirLok's present annual fixed costs per year. 2. Determine the number of units that Dimlok must sell to achieve both profit objectives. Be sure to consider all constraints in determining your answer. 3 without regard to your answer in requirement 2, assume that Donna decides to sell 46,000 unis at $230 per unit and 28,976 units at $185 per unit. (a) Prepare a budgeted income statement contribution format) for Dimiok showing budgeted operating income. (b) would this projected operating income meet the stated profit objectives