"Alpine, Inc., has been experiencing losses for some time, as shown by its most recent income statement: ALPINE, INC. Income Statement For the year ended June 30, 2011 Sales (40,000 Units at $12) $480,000 Less: Cost of Goods Sold Direct Materials $120,000 Direct Labor 65,600 Manufacturing Overhead 90,000 275,600 Gross Margin 204,400 Less: Operating expenses: Selling expenses: Variable: Sales Commissions $38,400 Shipping 14,000 52,400 Fixed (Advertising, salaries) 110,000 Administrative expenses: Variable (billing, other) 3,200 Fixed (salaries, other) 85,000 250,600 Net Loss $(46,200) All variable expenses in the company vary in terms of units sold, except for sales commissions, which are based on sales dollars. Variable manufacturing overhead is 50 cents per unit. The company’s plant has a capacity of 70,000 units. Management is particularly disappointed with 2011’s operating results. Several possible courses of action are being studied to determine what should be done to make 2012 profitable. REQUIRED: 4. Refer to the original data. Alpine, Inc.’s advertising agency thinks that the problem lies in inadequate promotion. By how much can advertising be increased and still allow the company to earn a target return of 4.5 percent on sales of 60,000 units? 5 pts. _____"