RadCliff Inc manufactures and sells a single product. Current sales are 12,000 units per year. Data for the current year is reflected below:

Selling Price per unit	$75 per unit
Manufacturing Costs
Direct Materials	$15 per unit
Direct Labor	$8 per unit
Variable Overhead	$4 per unit
Fixed Overhead	$240,000 per year
Non-Manufacturing Costs
Variable Selling and Administrative	$3 per unit
Fixed Selling and Administrative	$215,000 per year

RadCliff Inc manufactures and sells a single product. Current sales are 12,000 units per year. Data for the current year is reflected below: Selling Price per unit $75 per unit Manufacturing Costs Direct Materials $15 per unit Direct Labor $8 per unit Variable Overhead $4 per unit Fixed Overhead $240,000 per year Non-Manufacturing Costs Variable Selling and Administrative $3 per unit Fixed Selling and Administrative $215,000 per year REQUIRED: REQUIRED: Number of Units that RadCliff must sell annually to break-even Dollar margin of safety The company is considering implementing the following simultaneous changes: (a). Reduce the selling price per unit to $72.00 (b). Increase advertising budget which will increase the fixed selling expenses by $20,000 per year (c). Use a new supplier of direct materials. Direct material costs will decrease by 20%. If these changes are implemented, management believes that units sold will increase from 12,000 units to 15,000 units per year. REQUIRED: (1) Compute the new break-even point in units (ii) Compute the new dollar margin of safety (ii) Compute the change in net operating income