A company manufacturing toys has a fixed cost of $100,000. Variable cost is 6 per toy.Selling price is $10 per toy. Company target profit is $120,000.

1. How many toys should be sold to reach the target profit?
2. The company found that its variable cost is going to increase by $2 and plans to raise its selling price by $3 and reduced the fixed costs by $20,000. How many more (less) toys have to be sold at the new price to reach the target profit of $120,000?
3. What is the markup (profit margin %) on sales price at this new sales volume? What is the markup (profit margin %) on total cost?