Burke Inc. had the following results for 2013:

Sales $600,000

Cost of Goods Sold 255,000

Gross Profit 345,000

Selling and Administrative Expenses 205,000

Net Income $140,000

During the year the company produced and sold 25,000 units. The variable cost of goods sold was

$8.50 per unit and the variable selling and administrative expense was $2.50 per unit.

Required:

a. Calculate the breakeven point in units for the company.

b. If units sold were to decrease by 4000 units in 2014, predict net income for 2014.