Review the information in rows 1—S of Exhibit 12-3. Assume that Fairfield Blues takes actions to decrease its average tax rate to 18 percent by outsourcing its tax planning. This increases facility-level costs by an average of $10,000 per season.

Required

a. Compute the new break-even volume.

b. Compute the new target profit volume.

c. Explain the changes in these volumes.

d. Compute the new profit (loss) after tax.