Sun Devil, Inc. is considering the introduction of a new product with the following price and cost characteristics:

Sales price: $75.00 each

Variable Costs: . $25.00 each

Fixed costs: $300,000 per year

1. How many units must be sold to break even? a) 4,000 . b) 12,000 . c) 6,000 . d) 3,000

2. If 7,000 uits are sod, what operating profit is expected? a) $50,000 . b) $225,000 . c) $300,000 . d) $350,000

3. What would be the breakeven in units if the sales price increased by 20%? a) 4,615 . b) 4286 c) 4,350 . d) 4,718

4. What would be the breakeven in units be if the sales price increased by 20% and the variable costs increased by 40%?

a) 13,000 . b) 5,455 . c) 4,350 . d) 4,718

PLEASE step by step calculations. Thanks.