Aubrey Company produces a single product. Last year's income statement is as follows:

Sales (18,000 units)	$1,105,200
Less: Variable costs	739,800
Contribution margin	$365,400
Less: Fixed costs	254,700
Operating income	$110,700

Required:

1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar.

Break-even units
Break-even dollars

2. What was the margin of safety in dollars for the Company last year? Round your final answer to the nearest whole dollar. $

3. Suppose that Aubrey Company is considering an investment in new technology that will increase fixed costs by $213,900 per year, but will lower variable costs to 50 percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming the company makes this investment. Round all amounts to the nearest dollar.

Aubrey Company Budgeted Income Statement

Sales
Less: Variable costs
Contribution margin
Less: Fixed costs
Operating income

What is the new break-even point in units, assuming the investment is made? In your computations, round the unit contribution margin to the nearest cent. Round your final answer to the nearest whole unit.