Sony Company sells used TVS online. The projected after-tax net income for the current year is $500,000 based on a sales volume of 100,000 TVs. Sony has been selling the TVs at $350 each. The variable costs consist of the $115 unit purchase price of the TVs and a handling cost of $4 per TV. Sonys annual fixed costs are $1,000,000 and Sony is subject to a 35 percent income tax rate.

a. What is the breakeven point for Sony? (Before tax)

b. What is the after-tax income if sales decreased by 15%?

c. How much different in net income is this compared to the 100,000?