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Assume the following costs: Direct materials Direct labor $15. 00 per unit Variable overhead $60. 00 per unit Variable selling expenses $12.00 per unit Fixed

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Assume the following costs: Direct materials Direct labor $15. 00 per unit Variable overhead $60. 00 per unit Variable selling expenses $12.00 per unit Fixed overhead $ 3. 00 per unit Fixed selling and administrative expenses $600 , 000 $300, 000 If Top Sales Company sells their product at a price of $290 each , compute the following 1 . Breakeven point in units : 2 . Breakeven point in sales dollars :" 3 . How many units would have to be sold in order to generate a profit of $ 200 , 000 ? 4 . Assuming sales of 6, 000 units , compute the net income 5 . If the sales volume increased by 5% over the 6, 000 units sold , compute the new net income . 6. Top Sales has the opportunity to hire a new sales consultant . They would have to pay them an annual salary of $70 , 000 . The consultant is confident that the sales volume of 7, 000 units would increase by 10% . Should Top Sales accept the contract ? What would be the net increase or decrease to operating income based on your decision

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