Exercise 7-25 Manufacturing; Using CVP Analysis (L0 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 3,100,000 p per year. The variable cost of each component is 1,000 ,0, and the components are sold for 3,500 ,0 each. The company sold 5,300 components during the prior year. (,0 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 0.104 US. dollar. In the following requirements, ignore income taxes.) Required: 1. Compute the breakeven point in units. (Round your answer to the nearest whole number.) 2. What will the new breakeven point be if fixed costs increase by 10 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 3,000 pwill result in orders for 600 more components each year. What will the breakeven point be if the price is changed? (Round your answer to the nearest whole number.) 5. Should the price change discussed in requirement 4 be made? . Break-even point 2. New breakeven point 3. Net income 4. New breakeven point 5. Should the price change discussed in requirement4 be made? components