C. Breakeven Analysis (22 points) High School Traditions operates a shop that makes and sells class rings for local high schools. Operating statistics follow Average selling price per ring Variable costs per ring: $250 Rings and stones Sales commissions Variable overhead $ 90 18 Annual fixed costs: Selling expenses Administrative expenses Production $42,000 56,000 30,000 The company's tax rate is 30 percent. Requirements: 1. What is the firm's breakeven point in rings? In revenue? 2. How much revenue is needed to yield $140,000 before-tax revenue? 3. How much revenue is needed to yield an after-tax income of $120,000? 4. How much revenue is needed to yield an after-tax income of 20 percent of revenue? The firm's marketing manager believes that by spending an additional $12,000 in advertising and lowering the price by $20 per ring, he can increase the number of rings sold by 25%. He is currently selling 2,200 rings. Should he make these changes? Show proof 5