Mallard Company produces a product that has a variable cost of $25 per unit and a sales price of $55 per unit. The companys annual fixed costs total $730,000. It had net income of $290,000 in the previous year. In an effort to increase the companys market share, management is considering lowering the selling price to $49 per unit.

Required:

a.	If Mallard desires to maintain net income of $290,000 how many additional units must it sell to justify the price decline?
b.	Assume that in addition to lowering its selling price to $49, Mallard also desires to increase its net income by $72,000. Determine the number of units the company must sell to earn the desired income.