3. Start with the following information all questions Given: Penta Company makes and sells a single product. The current selling price is $50 per unit. Variable expenses are $30 per unit. Fixed expenses are $50,000 per month. Note: For each question, always begin with the amounts given above and make changes (only if needed) as each question introduces new information. 2. 1. The break-even point in total sales in dollars is: The break-even point in total units is: What would be the monthly operating income at a volume of 6000 units per month? 4. How many units must be sold to reach a target monthly income of $20,000? 5. If the company decided a drop of $5 in price could increase sales to 8000 units, what would be their monthly income?

1. The break-even point in total sales in dollars is: 2. The break-even point in total units is: 3. What would be the monthly operating income at a volume of 6000 units per month? 4. How many units must be sold to reach a target monthly income of $20,000 ? If the company decided a drop of $5 in price could increase sales to 8000 units, what would be their monthly income? 6. If the company decided an increase of $5000 in the advertising budget would increase sales to 8000 units, what would be their monthly income? 7. Which choice, \#5 or \#6 would be the better choice? Why? 8. The company currently has two sales people earning a salary of $2500 per month each. If instead, they paid each salesperson a salary of $1000 per month plus a commission of $0.50 for each unit each sold, how much would the income per month be at 6000,8000 , or 10,000 units sold? How many units would one salesperson have to sell to earn as much per month as under the original compensation plan