The Raquet Busines is planning to manfacture a new type of tennis ball. Each ball would sell for $3.75 and requires $1.75 in variable cost. In additon, annual fixed costs associated with the project would total $64,000.

a. Use the contribution margin approach to calculate:

(1) the breakeven point in units

(2) the breakeven point in dollars

B. Determine the operating income or loss at a sales volume of 30,000 tennis balls.

C. Determine the number of tennis balls that must be sold to earn a profit of $80,000.