Alliance Enterprises is considering extensively modifylng thelr manufacturing equipment. The modifications will result in less wastage of

materials, which will reduce variable manufacturing costs and introduce changes to the production process that will improve product

quality. This will allow Alliance to increase the selling price of the product. Annual fixed costs are expected to increase to $$300,000$ if

the modifications are made. Expected fixed and varlable costs as well as the selling prices are shown below:

Required:

Determine Alliance Enterprises' break$-$even point in units with the existing equipment and with the modified equipment.

Determine the sales level in units at which the modified equipment will achleve a $10\%$ target profit$-$to$-$sales ratio $($Ignore taxes$).$

Determine the sales level in units at which the modified equipment will achleve $$75,600$ in after$-$tax operating income. Assume a tax

rate of $30\%.$

Determine the sales level at which profits will be the same for elther the existing or modified equipment.