Ventana Inc. sells a single product for $48. Its management estimates the following revenues and costs for the year 2018:

Net Sales	$620,000	Selling expenses Variable	$18,500
Direct Materials	85,000	Selling expenses Fixed	21,500
Direct Labour	78,000	Admin expenses Variable	3,500
Mfg Overhead Variable	32,000	Admin expenses - Fixed	2,500
Mfg Overhead - Fixed	25,00

Required:

1. Assuming fixed costs and net sales are spread evenly throughout the year, determine Ventanas monthly break-even point in (a) units and (b) dollars.

2. Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit

3. Determine the percentage increase of annual profits if Ventana Inc. increases its selling price by 25% and all other factors (including demand) remain constant.

4. Assume the price remains at $48 per unit and variable costs remain the same per unit, but fixed costs increase by 15% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in required # 2

5. Determine the sales required to earn an operating income of $375,000 after tax. Ventana Inc.s income tax is 28%.