In 1992, Midas Company sold 52,000 units for $260,000 and made a loss of $20,000. The variable cost per unit was $4.00. For 1993 you are informed that fixed cost will be increased by $30,000 over 1992; that the selling price will increase by 20% per unit and variable costs will be $5.50 up to the 40,000 level, but will decrease to $5.00 per unit above the 40,000 level.

a. What is the break-even point in sales for 1993?

b. Calculate the profit or loss if 130,000 of the units are sold in 1993.