Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40%. The companys fixed expenses are $450,000 per year. The company plans to sell 12,000 knapsacks this year.

Required:
1.	What are the variable expenses per unit?

2.	Use the equation method for the following:

a.	What is the break-even point in units and in sales dollars?

b.	What sales level in units and in sales dollars is required to earn an annual profit of $92,000?

c.	What sales level in units is required to earn an annual after-tax profit of $92,000 if the tax rate is 20%?

d.	Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 per unit. What is the companys new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

3.	Use the formula method for the following:

a.	What is the break-even point in units and in sales dollars?

b.	What sales level in units and in sales dollars is required to earn an annual profit of $92,000?

c.	What sales level in units is required to earn an annual after-tax profit of $92,000 if the tax rate is 20%?

d.	Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 per unit. What is the companys new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)