Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed

costs are $4,000,000$ per year. The variable cost of each component is $2,000p,$ and the components are sold for $3,000p$ each. The

company sold $5,000$ components during the prior year. $(p$ denotes the peso, Argentina's national currency. Several countries use the

peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth US$$0\mathrm{.}104.$ In the following requirements,

ignore income taxes.$)$

Required:

Compute the break$-$even point in units.

What will the new break$-$even point be if fixed costs increase by $10$ percent?

What was the company's net income for the prior year?

The sales manager believes that a reduction in the sales price to $2,500p$ will result in orders for $1,200$ more components each year.

What will the break$-$even point be if the price is changed?

Should the price change discussed in requirement $4$ be made?