Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes.

The following information relates to one of their popular products, the orange flavor:

Selling price per unit	R20.00
Variable cost per unit	R6.50
Fixed cost per unit*	R10.00
Annual sales in units	99 000

*Fixed cost was allocated based on an expected annual production of 100 000 units.

REQUIRED:

The marketing manager of Xtra Energy introduced a marketing campaign that is expected to double the current sales volume. If the companys goal is to increase current net income of the product by 50%, calculate the maximum amount that can be spent on a marketing campaign. Assuming the variable cost per unit and fixed cost remained constant.

Round off to 2 decimal places where required.