Forge, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its ten salespeople earns a 10% commission on the units they sell for $200 each, plus a fixed salary of $37,000 each. Forge hopes that by increasing commissions to 20% and decreasing each salespersons salary to $27,000, sales will increase because salespeople will be more motivated. Currently, sales are 12,000 units. Forges other fixed costs, NOT including the salespeoples salaries, total $168,000. Forges other variable costs, NOT including commissions, total $40 per unit.

A. What is the current profit?

B. What is the current break-even point in units?

C. What would the break-even point in units be if commissions increased and salaries decreased?

D. If sales increase by 1,000 units, what will profit be under the new plan?

E. At what sales level would Forge be indifferent between the lower-commission and the higher-commission plan?