please answer questions 5 and 6

Serendipity Sound, Inc. manufactures and sells compact discs. Price and cost data are as follows: Problem 7-40 Basic CVP Relationships (0 1,2,4) Selling price per unit (package of two COs) Variable costs per unit $25.00 3 Sales units required for larget operating income Direct material Direct labor Artist's royalties... Manufacturing overhead. Selling expenses s6.00 5.00 140 000 0contibution-marg 3.00 raio, 208 1.30 Total variable costs per unit Manufacturing overhead Total fixed costs $19.80 Annual fixed costs: . 192,000 Selling and administrative. 276,000 S 468,000 $3,000,000 Forecasted annual sales volume (120,000 units) Required 1. What is Serendipity Sound's break-even point in units? 2. What is the company's break-even point in sales dollars? 3. How many units would Serendipity Sound have to sell in order to earn operating income of $260,000? What is the firm's margin of safety? Management estimates that direct-labor costs will increase by 8 percent next year. How many units will the company have to sell next year to reach its break-even point? If the company's direct-labor costs do increase by 8 percent, what selling price per unit of product must it charge to maintain the same contribution-margin ratio? 4. 5. 6