10. Orange County, Inc. sells its only product for $50 per unit. The variable cost per unit is $30 and the firm has fixed costs totaling $4,000.

Required:

a. Compute the number of units Orange County must sell in order to break even.

b. Determine sales revenues (in dollars) if the firm desires a target profit of $2,500.

c. Assume that Orange County expects to earn a target profit of $3,000 under its original assumptions (selling price $50, variable cost $30, and fixed cost of $4,000) by selling 350 units. The firm can decrease its fixed costs to $2,000 if it is willing to increase variable costs to $35 per unit. Should the company change its cost structure?