The Sweet Corporation reported the following information for the year ended December 31, 2008.

Net Sales		$151,350
Cost of Production	$105,000		75% variable, 25% fixed
Marketing and distribution	$16,350		40% variable, 60% fixed
Other expenses	$9,000		100% fixed
Total Expenses		$130,350
Operating Income		$21,000

The company sold 10,000 pounds of sugar during 2019.

For 2020, the company expects other expenses to increase by 25% and unit sales to increase by 20%. The company also expects to sell all of the sugar that they produce. There will be no ending inventories of sugar. There are no other changes expected for 2020. All cost relationships are expected to remain the same.

Round ALL cost per unit computations to two decimal places.

Show supporting computations in good form.

Required:

a. Compute the breakeven point in units for the year 2019. ____________________(Round UP to the nearest whole unit)

b. Compute the operating income for the year 2020. $___________________(Round to the nearest whole dollar)