Question 7 (7 points) A company currently sells 22,000 units and has the following operating results: Per Unit Sales $60 Variable expenses 35 25 Fixed expenses 19 Operating income $6 Required: 1. The sales manager thinks that a 10% reduction in the selling price will result in increased sales of 3,600 units. Calculate the new total operating income if this action is taken. (3 marks) 2. Using the original information above, calculate the number of units that must be sold to have an after-tax income of $160,000 assuming the tax rate is 20%. (4 marks)