Glass-Works, Inc., makes and sells a variety of cut glass vases. Fixed costs are \($216,000\) per year. The average price for a cut glass vase is \($24\), and the average variable cost is \($16\) per item.

Required:

1. How many vases must be sold to break even?

2. If Glass-Works wants to earn \($130,000\) in profit, how many vases must be sold?

Prepare a variable-costing income statement to verify your answer.