Jasson Company manufactures gargoyle figurines. Fixed costs amount to $150,000 per year. Variable expenses per gargoyle are $2.50, and the average price per gargoyle is

$10.

Required:

1. How many gargoyles must Jasson Company sell to break even?

2. If Jasson Company sells 36,000 gargoyles in a year, what is the operating income?

3. If Jasson Company's variable expenses rise to $3.75 per gargoyle while the price and fixed expenses remain unchanged, what is the new break-even point?