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Noble company's projected income statement shows the following results from selling 100,000 units of product. Net sales 2,000,000, total expenses $1,760,000, net income $240,000. The

Noble company's projected income statement shows the following results from selling 100,000 units of product.

Net sales 2,000,000, total expenses $1,760,000, net income $240,000. The details of the expenses are as following:

Fixed Variable Total

Cost of goods sold $420,000 $780,000 $1,200,000

Selling Expenses 340,000 100,000 440,000

Administrative Expenses 60,000 60,000 120,000

Total Expenses $820,000 $940,000 $1,760,000

Compute the break-even point in dollar and units for each of the independent alternatives:

1. Increase unit selling price by 20% with no change in variable or fixed costs.

2. Increase the sales volume by 20% but keep the price per unit the same.

3. Change the compensation of salespersons (selling expenses) to 10% commission of sales with no fixed cost.

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