Lynbrook, Inc. has diversified into the drug-testing industry during the past few years. As the controller, you are responsible to evaluate the three drug-testing products of the company. The company offers three basic drug- testing services for professional athletes. Here are its prices and costs: Price Variable Cost Units Sold per Year per Unit per Unit Basic Retest Vital .. $ 500 800 4,000 $ 120 400 2,800 850 100 50 Variable costs include the labor costs of the medical technicians at the lab. Fixed costs of $390,000 per year include building and equipment costs and the costs of administration. A basic "unit" is a routine drug test administered. A retest is given if there is concern about the results of the first test, particularly if the test indicates that the athlete has taken drugs that are on the banned drug list. Retests are not done by the laboratory that performed the basic test. A "vital" test is the laboratory's code for a high-profile case. This might be a test of a famous athlete and/or a test that might be challenged in court. The labo tory does extra work and uses expensive expert technicians to ensure the accuracy of vital drug tests. Lynbrook is subject to a 40 percent tax rate. Required 1. Given the above information, how much will Lynbrook earn each year after taxes? 2. Assuming the above sales mix is the same at the break-even point, at what sales revenue does Lynbrook break even? How may Basic, Retest, and Vital tests (units) will be sold at breakeven point. 3. At what sales revenue will the company earn $180,000 per year after taxes assuming the above sales mix? How may Basic, Retest, and Vital tests (units) will be sold at this sales revenue point. 4. Lynbrook is considering becoming more specialized in retests and vital cases. This change would result in the number of retests increasing to 400 per year and the number of vital tests increasing to 200 per year, while the number of basic tests would drop to 100 per year? With this change in product mix, the company would increase fixed costs to $420,000 per year. What would be the effect of this change in product mix on Lynbrook's earnings after taxes per year? If the laboratory's managers seek to maximize the company's after-tax earnings, would this change be a good idea