Tracey Douglas is the owner and managing director of Heritage Garden Furniture Ltd, a South African company that makes museum quality reproductions of antique outdoor furniture. Tracey would like advice concerning the advisability of eliminating the model C3 lawn chair. These lawn chairs have been among the company's best-selling products, but they seem unprofitable. A condensed statement of operating income for the company and for the model C3 lawn chair for the quarter ended June 30 follows 'The currency in South Africa is the rand, denoted here by R. a. Direct labour is a variable cost at Heritage Garden Fumiture. b. All of the company's products are manufactured in the same focility and use the same equipment. Buiding rent, maintenance, ond depreciation are allocated to products using various bases. The equipment does not wear out through use; it eventually becomes obsolete. c. There is ample capacity to fill all orders. d. Dropping the model C3 lawn chair would have no effect on sales of other product lines. e. Inventories of work in process or finished goods are insignificant. f. Shipping costs are traced directly to products. 9. General administrative expenses are allocated to products on the basis of sales dollars. There would be no effect on the total general administrative expenses if the model C3 lawn chair were dropped. h. If the model C3 lawn chair were dropped, the product manager would be laid off. Required; 1-b. Would you recommend that the model C3 lawn chair be dropped? Yes No 2. What would sales of the model C3 lawn chair have to be, at minimum, in order to justify retaining the product? (Hint. Set this up as a break-even problem, but include only the relevant costs from part (1)) (Round "Contribution margin ratio" to 2 decimal places and final answer to the nearest whole number.)