LO5-6, LO5-7] Neptune Company has developed a small Inflatable toy it is anxious to Introduce to its customers. The company's Marketing Department estlmates demand for the new toy will range between 10,000 units and 35,000 units per month. The new toy will sell for $9.00 per unit. Enough capacity exists In the company's plant to produce 15,000 units of the toy each month. Varlable expenses to manufacture and sell one unit would be $5.00, and Incremental fixed expenses assoclated with the toy would total $36,000 per month. Neptune has also Identlfied an outside supplier who could produce the toy for a price of $4.00 per unit plus a fixed fee of $25,000 per month for any production volume up to 15,000 units. For a production volume between 15,001 and 35,000 units, the fixed fee would Increase to a total of $50,000 per month. Requlred: 1. Calculate the break-even point In unlt sales assuming Neptune does not hire the outslde supplier. Note: Do not round your Intermedlate calculations. 2. How much profit will Neptune earn assuming: a. It produces and sells 15,000 unlts? b. It does not produce any units and Instead outsources the production of 15,000 units to the outside supplier and then sells those unlts to Its customers? 3. Calculate the break-even point In unlt sales assuming Neptune plans to use all of Its production capacity to produce the first 15,000 that It sells and also commlts to hiring the outside supplier to produce up to 20,000 additional units. 4. Assume Neptune plans to use all of Its production capacity to produce the first 15,000 unlts it sells and also commits to hiring the outside supplier to produce up to 20,000 additional units. a. What total unlt sales would Neptune need to achleve to equal the profit earned In requirement 2a ? b. What total unit sales would Neptune need to achleve to attaln a target profit of $26,500 per month? c. How much profit will Neptune earn If It sells 35,000 units per month? d. How much profit will Neptune earn If It sells 35,000 units per month and agrees to pay Its marketing manager a bonus of 10 cents for each unlt sold above the break-even point from requirement 3 ? 5. If Neptune outsources all production to the outside supplier, how much profit will the company earn If It sells 35,000 units