New Tech Limited manufactures and sells wireless phone chargers. The product sells for $30 per unit and has a CM ratio of 503 . The company's fixed expenses are $450,000 per year.

Required:
1. What are the variable expenses per unit?
2. What is the annual break-even point in units and in sales dollars?
3. What annual sales level in units and in sales dollars is required to earn target operating income of $150,000? Ignore taxes.
4. Assume that New Tech is able to reduce variable costs by $3 per unit but to do so will increase fixed costs by $54,000. What is the company's new annual break even point in units?
5. Referring to the original data, what sales level in dollars is required to earn an annual target profit of $100,000 after taxes if the company's tax rate is 203 ?