The Chris Corporation sells only one product. The following is budgeted information for that product:

Annual production and sales capacity (units)	100,000
Budgeted selling price	$25 per unit
Variable cost of goods sold	$10 per unit
Fixed manufacturing costs	$200,000
Variable selling and administrative costs	$5 per unit
Fixed selling and administrative costs	$160,000

Chriss corporate tax rate is 40%.

1. How many units does Chris need to sell to breakeven?

2. How much revenue does Chris need to generate to breakeven?

3. How many units does Chris need to sell to earn an operating profit (before taxes) of $240,000?

4. How much revenue does Chris need to generate to earn net income (after taxes) of $180,000?

5. Assume Chris is currently producing and selling 54,000 units. By what percentage will operating income change if sales increase by 15% from 54,000 units? Be sure to provide figures to justify your answer.

6. Assume Chris is currently producing and selling 54,000 units. By what percentage will operating income change if sales decrease by 10% from 54,000 units? Be sure to provide figures to justify your answer.