1. The Company's cost accountant has prepared revenue and cost budgets for three alternative volume levels.

His figures are as follows:

Alternative	1	2	3
Units of output	5,000	6,000	7,000
Variable cost	28,000	43,200	47,600
Fixed cost	8,500	16,000	20,000
Sales revenue	55,000	90,000	84,000

1.Determine the target income for three alternative volume levels.

2.Compute what the target income for three alternative volume levels would be under each of the following assumptions. (I). the sale price decrease 20 % (II). The variable cost increase 10 % (III). The sale volume increases 15 % and (IV). The fixed cost increase 8 %.