Blue Bell Industries manufactures a single product. This product sells for $105 each. When Blue Bell produces 5,000 units, the following manufacturing costs are incurred:

Direct materials $175,000

Direct labor 150,000

Variable mfg overhead 50,000

Fixed mfg overhead 402,000

Total mfg costs $777,000

The selling and administrative costs are: Variable, $7 per unit; Fixed, $311,000.

Blue Bells tax rate is 40%.

REQUIRED

1. What is the break-even point in units? In dollars?

2. How many units does Blue Bell have to sell to earn a target net income of $48,300?

3. If sales of this product are 52,000 units, what is the net income?