Question 2 Eagles Co. is a provider of catering food for hotels. The company services hotels, and motels in California area. Small but steady growth in sales has been achieved over the past few years while food prices have been increasing. The company is formulating its plans for the coming fiscal year. Presented below are the data used to project the current year's after-tax net income of $805,000. Average selling price $14.00 Average variable costs: Food production Selling expense Total $5.00 1.00 $6.00 Annual fixed costs: Selling Administrative Total 600,000 650,000 $1,250,000 Expected annual sales volume 300,000 Tax rate 30% Due to inflation rate Eagles Co's food production costs will increase for 10 percent. Eagles Co management expects that other costs will not change. Required: a. What is Eagle Co's break-even point in food sales as units? b. What selling price per food must Eagles Co. charge to cover the 10 percent increase in variable production costs of food and still maintain the current contribution margin percentage? c What volume of sales in dollars must Eagles Co. achieve in the coming year to maintain the same net income after taxes as projected for the current year if the selling price of food remains at $14 per food and the variable production costs of food increase 10 percent