Payne Company sells shoes which are made in the USA. Current data per month is as follows:

Selling Price $60.00

Variable Cost Per Unit $30.00

Monthly Fixed Costs $100,000

Units Sold 5,000

Payne has the opportunity to shift production overseas. The overseas manufacturer would charge a monthly fee of $120,000 to make all of the shoes, thus eliminating all of the variable costs.

• Calculate the net income and the break-even in units using the current data.
• Calculate the net income and the break-even in units assuming Payne shifts production overseas.

	Current	Shift Production
Net Income
Break-Even in Units