Question $3(20$ marks$)$

Sleeping Beauty Limited is a newly organized manufacturing business that plans to manufacture and

sell $55,000$ units per year of a unique sleeping silk bonnet. The following estimates have been made of

the company's costs and expenses.

Instructions: a$.$ What should the company establish as the sales price per unit if it sets a target of earning an operating income of $$300,000$ by producing and selling $55,000$ units during the first year of operations? $(6$ marks$)$ b$.$ At the unit sales price computed in part a$,$ how many units must the company produce and sell to break even? $($Assume all units produced are sold.$)(4$ marks$)$ c$.$ What will be the margin of safety $($in dollars$)$ if the company produces and sells $55,000$ units at the sales price computed in part a$?(5$ marks$)$ d$.$ Assume that the marketing manager thinks that the price of this product must be no higher than $$16$ to ensure market penetration. Will setting the sales price at $$16$ enable Sleeping Beauty to break even, given the plans to manufacture and sell $55,000$ units? Explain your answer. $(4$ marks$)$