Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $60 per unit and has a CM ratio of 40%. The company's fixed expenses are $360,000 per year. The company plans to sell 17,000 knapsacks this year.

Required:

1. What are the variable expenses per unit?
2. Answer the following questions independently:
   1. What is the break-even point in units and in sales dollars?
   2. What sales level in units and in sales dollars is required to earn an annual profit of $90,000?
   3. What sales level in units is required to earn an annual after-tax profit of $90,000 if the tax rate is 25%?
   4. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company's new break-even point in units and in sales dollars?