manufacturer Camilla's, a high-fashion dress manufacturer, is planning to market a new cocktail dress for the coming year Camilla's supplies retailers primarily in the eastern states of Australia. L019.7 Four metres of material are required to lay out the dress pattern. Some material that could be sold remain after cutting. The leftover material could also be used to manufacture a matching wrap and handbag. Howeve if the leftover material is used for the wrap and handbag, more care will be required in the cutting operation which will increase the cutting costs. The company expects to sell 1 250 dresses. Market research reveals that dress sales will be 20 per cen higher if a matching wrap and handbag are available. The market research indicates that the wrap an handbag will be saleable only as accessories with the dress. The combination of dresses, wraps and handbag expected to be sold by retailers is as follows: Percentage of total 70% Complete sets of dress, wrap and handbag Dress and wrap 6% Dress and handbag 15% Dress only 9% Total 100% The material used in the dresses costs $30 a metre, or $120 for each dress.