Roger Company sells a single product at a price of $120 per unit. Variable costs per unit are $80 and total fixed costs are $500,000. Roger is considering the purchase of a new piece of equipment that would increase the fixed costs to $700,000, but decrease the variable costs per unit to $70. Roger Company's tax rate is 30 percent.

Required:

1. If Roger Company expects to sell 22,000 units next year, should they purchase this new equipment?
2. What would be Roger's after-tax income assuming they kept the old piece of equipment and sold 22,000 units?
3. What is Roger's breakeven point in units assuming they purchased the new equipment?