Larson Co. produces telephone answering machines. At March 1, Larson estimatesfixed costs related to production to be $700,000. The unit selling price,unit variable cost, and unit contribution margin for Larson Co. are as follows:

Unit selling price ........................ $75Unit

variable cost ....................... 25Unit

contribution margin ............ $50

Instructions: (3) What would the break-even point be if the cost of direct materials increasedby $1.00 per unit? (4) What would the break-even point be if the selling price increased to $77 pertelephone answering machine? (5) What is the sales volume necessary to earn a target profit of $300,000?