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:
(i) Compute the new break-even point in units
(ii) Compute the new dollar margin of safety
(iii) Compute the change in net operating income