a) Danny has a cm/unit = $14 at 22,000 units. Danny is considering increasing fixed costs by $24,880 in order to reduce VC/unit by 60 cents. How many additional units must Danny sell for these changes to increase after-tax net income by $7,154? (assume 30% tax rate)

b) DIV X has the following DL standards:

DLHRS/UNIT 1.5

$/DLHR $22

DIV X used 42,560 DLHRS to produce 28,000 units. What is the DL efficiency variance? (amount and fav/unfav)