Orange County, Inc. sells its only product for $50 per unit. The variable cost per unit is $30 and the firm has fixed costs totaling $4,000. Required: 6. Compute the number of units Orange County must sell in order to break even. 7. Determine sales revenues (in dollars) if the firm plans for $2,500 in pretax profit. 8. Assume that Orange County expects to earn $3,000 of pretax profit under its original assumptions (selling price $50, variable cost $30, and fixed cost of $4,000) by selling 350 units. The firm can decrease its fixed costs to $2,000 if it is willing to increase variable costs to $35 per unit. Should the company change its cost structure?

	Current	Proposed
Revenues	$17,500	$17,500
-Variable costs	10,500	12,250
= Contribution margin	7,000	5,250
-Fixed costs	4,000	2,000
= Income	$3,000	$3,250