Computer Data Storage (CDS), located in Calgary, Alberta, holds a 4-percent share of the total annual market of 50,000 computer backup storage devices. CDS provides its retailers with a margin of 35 percent on a retail price of $2,000 per storage device. Brenda Ditner, CDS's controller, estimates that variable production costs amount to $825 per storage device and fixed manufacturing costs total $280,000 per year. In addi-tion, shipping and packaging costs of $45 per unit are paid by CDS. Management costs are $95,000 per year, and the annual advertising budget is $120,000. The company employs one sales representative at a salary of $65,000. a) What are CDS's fixed costs? b) What are CDS's variable costs per unit? c) What is the unit contribution? d) What is the break-even volume for CDS (in units)? e) What market share is needed to achieve this volume? f)What are CDS's current profits? g)If establishing CDS involved an investment of $1,200,000 and the company requires a return of 16 percent on its capital, is the storage device line still profitable? Justify your answer. h) What are the profits after allowing for the required return on capital? i) Nick Wang, the firm's vice-president of marketing, estimates CDS can sell 6 per- cent more storage devices than it does currently by increasing its advertising budget from $120,000 to $140,000. Alternatively, if he reduces the advertising budget by $20,000, he expects to sell 95 fewer units. Should CDS raise or lower its advertising budget? Why? j)What would be the break-even level (in units) if the advertising budget were raised? k) What would be the break-even level (in units) if the advertising budget were lowered? l) As an alternative to the change in advertising, CDS is considering offering one free storage file sorter with every storage device sold. These sorters cost CDS $60 each. If this offer can increase storage device sales by 180 units, what would be the change in total profits?