The income statement for Baxter Company for 2008 appears below. BAXTER COMPANY Income Statement For the year Ended December 31,2008 ----------------------------------------------------- Sales (40,000 units)....................$1,000,000 Variable Expenses..........................700,000 ________ Contribuation Margin.......................300,000 Fixed Expenses.............................330,000 _________ Net income (loss)........................$(30,000) ________ ________ Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers: 1. What was the company's break-even point in sales dollars in 2008? 2. How many additional units would the company have had to sell in 2009 in order to earn net income of $30,000? 3. If the company is able to reduce variable costs by $2.50 per unit in 2009 and other costs and unit revenues remain unchanged how many units will the company have to sell in order to earn a net income of $35,000