Exercise $7-25$ Manufacturing; Using CVP Analysis $($LO $7-1,7-4)$

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm$$s fixed costs are $3,500,000$ p per year. The variable cost of each component is $1,900$ p$,$ and the components are sold for $3,100$ p each. The company sold $5,900$ components during the prior year. $($p denotes the peso, Argentina$$s national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina$$s peso was worth $0\mathrm{.}104$ U$.$S$.$ dollar. In the following requirements, ignore income taxes.$)$

Required:

$1.$ Compute the break$-$even point in units. $($Round your answer to the nearest whole number.$)$

$2.$ What will the new break$-$even point be if fixed costs increase by $15$ percent? $($Round your answer to the nearest whole number.$)$

$3.$ What was the company$$s net income for the prior year?

$4.$ The sales manager believes that a reduction in the sales price to $2,600$ p will result in orders for $500$ more components each year. What will the break$-$even point be if the price is changed? $($Round your answer to the nearest whole number.$)$