The McGill Company currently sells its product for $10 and has variable costs of $6 per unit. Fixed costs are $30,000.

1. Whats the break-even point quantity?
2. What sales quantities are required in order to earn $50,000 in profit?
3. In the past two years, fixed costs increased by 20% and variable costs decline by $1 per unit, what sales quantity are required to earn $50,000 profit?
4. As a manager, determine what needs to be done at this stage. Would you advise to discontinue this line of products if the variable cost does increase next year?