Lux Corp. manufactures and sells a single product.Over the past year the company sold 500 units, with the following operating results.(15 points)

TotalPer unit

Sales (500)$100,000$200

Less variable expenses75,000150

Contribution margin$25,000$50

Less fixed expenses17,000

Net income$8,000

(1)Compute:(a) the CM ratio; (b) the break-even point in units; (c)the break-even point in $sales;and(d) the margin of safety

(2)How many units must be sold to earn a minimum target net income of $15,000?

(3)Due to an increase in the cost of direct materials, the company estimates that variable costs will increase by $5 per unit next year.If this change takes place and the selling price per unit remains constant at $200, what will be the (a)new CM ratio and (b)the new break-even point in number of units?

(4)Refer to the original data.The company is considering the construction of a new, automated plant. The new plant would slash variable costs per unit by 40%, but it would cause fixed costs to increase by 80%.If the new plant is built, what would be the company'snew break-even point in number of units?