Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the companys costs is as follows:

Variable manufacturing cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9

Variable selling and administrative cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . $4

Fixed manufacturing overhead per month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000

Fixed selling and administrative cost per month . . . . . . . . . . . . . . . .. . . . . . . . . . . $350,000

a. Determine the companys monthly break-even point in units.

b. Determine the sales volume (in dollars) required for a monthly operating income of $100,000.

c. Estimate the amount by which monthly operating income will increase if the company anticipates a $200,000 increase in monthly sales volume.