Savvy pants Co. sells pants wholesale to major retailers across Far East. Each pant has a selling price of $90 with $65 in variable costs of goods sold. The company has fixed manufacturing costs of $1,700,000 and fixed marketing costs of $550,000. Sales commissions are paid to the wholesale sales reps at 15% of revenues. The company has an income tax rate of 33%. Required: 1. How many pants must Savvy sell in order to break even? 2. How many pants must it sell in order to reach? a) A target operating income of $1,000,000? b) A net income of $500,000? 3. How many pants would Savvy have to sell to earn the same net income of 500,000 if the contribution margin per unit increases by 20% and simultaneously the fixed manufacturing costs increases 10%.