The Sales Manager of Letlalo Products (Pty) Lid asked you to assist him in preparing amotivation to introduce a new leather handbag into the range of products that the company offers. The company policies are as follows: 1. The selling price is calculated at a mark-up of 50% on variable cost. 2. New products introduced must contribute 15% net profit after tax. He supplied you with the following information: Cost per unit Other information Leather R246.00 Silk material R350.00 Labour 3 hours @ R185.00 per hour Overheads R155.00 per labour hour Incremental fixed cost R625,000.00 Tax rate 28% The sales manager estimated the market size to be 2,000 handbags for the year. Required: 1. Calculate the break-even units of handbags to be sold. (10Marks) 2. Calculate and comment if the handbag will comply with the company's policy regarding the introduction of new products. (Show all your calculations as method marks will be awarded. (10Marks)