Olmos Company manufactures room-sized air purifiers. Fixed costs amount to \($1,386,000\) per year. Variable costs per air purifier are \($98\), and the average price per air purifier is $120.

Required:

1. How many air purifiers must Olmos Company sell to break even?

2. If Olmos Company sells 85,000 air purifiers in a year, what is the operating income?

3. If Olmos Company’s variable costs decrease to \($70\) per air purifier while the price and fixed costs remain unchanged, what is the new break-even point?