The income statement for Bradford Machine Company for 2012 appears below.

BRADFORD MACHINE COMPANY Income Statement For the Year Ended December 31, 2012

Sales (40,000 units)	$1,000,000
Variable expenses	700,000
Contribution margin	300,000
Fixed expenses	360,000
Net income (loss)	$ (60,000)

Instructions Answer the following independent questions: (Use comma's but NO dollar signs)

1.	What was the company's break-even point in sales dollars in 2012?
2.	How many additional units would the company have had to sell in 2013 in order to earn net income of $45,000?
3.	If the company is able to reduce variable costs by $2.50 per unit in 2013 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 $45,000?