Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is$3,020,000 based on a sales volume of 290,000 video disks. Detroit Disk has been selling the disks for $18.00 each. The variable costs consist of the $4.00 unit purchase price of the disks and a handling cost of $2.00 per disk. Detroit Disk's annual fixed costs are $460,000.

Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.)

Required:1.Calculate Detroit Disk's break-even point for thecurrent yearin number of video disks.(Round your final answer up to nearest whole number.)

Break-even point = ___

2.What will be the company's net income for thecurrent yearif there is a 10 percent increase in projected unit sales volume?

Net income = ___

3.What volume of sales (in dollars) must Detroit Disk achieve in thecoming yearto maintain the same net income as projected for the current year if the unit selling price remains at $18.00 but the unit purchase price of the disks increases by 20 percent as expected?(Do not round intermediate calculations and round your final answer to the nearest whole number.)

Volume of sales ___

4.In order to cover a 20 percent increase in the disk's purchase price for thecoming yearand still maintain the current contribution-margin ratio, what selling price per disk must Detroit Disk establish for the coming year?(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Selling price ___