Question 2: Problem (11 marks) Scholar Backpacks Pty Ltd has estimated that budgeted production and sales of its backpacks during the coming year will be 70 000 units at an average price of $60 per unit. Variable manufacturing costs are estimated to be $24 per unit, and variable marketing costs $12 per unit sold. Fixed costs are expected to amount to $1 080 000 for manufacturing and $432 000 for marketing. There will be no beginning or ending work in process inventory or finished goods inventory. (Ignore income taxes.) Required: 1. Calculate the company's budgeted break-even point in sales dollars for the coming year. 2. Calculate the number of sales units required to earn a net profit of $1 080 000 during the coming year. 3. If the company's variable manufacturing costs are 20 per cent higher than budgeted, calculate the break-even point in sales dollars. 4. If the variable manufacturing costs are 20 per cent higher than budgeted, calculate the selling price that would yield the same contribution margin ratio in the coming year. 5. The company has estimated that if sales are less than 50 000 units, then budgeted manufacturing fixed costs will drop to $600 000. Other budgeted costs remain unchanged Calculate the break-even point when sales fall below 50 000 units