Flyer Corporation manufactures two products, Product A and Product B$.$ Product B is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product $A.$ Product $B$ is the more complex of the two products, requiring three hours of direct labour time per unit to manufacture compared to one and one$-$half hours of direct labour time for Product A$.$ Product B is produced on an automated production line.

Overhead is currently assigned to the products on the basis of direct labour$-$hours. The company estimated it would incur a total of $$396,000$ in manufacturing overhead costs and

The company sells its only product for $$10$ per unit. There was no beginning or ending inventories.

Required:

a$.$ What are total sales in dollars at the break$-$even point?

b$.$ What are total variable expenses at the break$-$even point?

c$.$ What is the company's contribution margin ratio?

d$.$ If unit sales were increased by $10\%$ and fixed expenses were reduced by $$2,000,$ what would be the company's expected net income? $($Prepare a new income statement.$)$