7. The president of Lucy, Inc. notes that the net income after income taxes last year was Br. 162, 000. Income taxes are at the rate of 40% of income before taxes. This profit was earned by selling 255, 000 units of a product at a price to Br. 6.00 per unit. By reducing the selling price to Br. 5.00 per unit, he believes that sales volume can be increased to 350, 000 units next year and those profits will be increased as a result. Fixed costs for the year are Br. 240,000. Instruction: a) Will profits be increased by the reduction in the selling price and the expected increase in sales volume? Show computations. b) With a selling price of Br.5.00 per unit, how much sales volume is needed to earn no less than Br.162, 000 after income taxes?