A business has the capacity to manufacture 740 electronic components per annum that it sells for $500 each. The variable costs are $250 per component and the fixed costs are $101,000 per year.

a. What quantity should it sell in a year to have a net income of $41,000 per year?

b. What is the net income per year at capacity?

c. What is the quantity that it needs to sell to have a net income of $41,000 per year if the selling price of the component is reduced by 10.00% and variable costs are increased by 12.00%?