Exercise $7-25$ Manufacturing; Using CVP Analysis $($LO $7-1,7-4)$

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are $3,700,000p$ per year. The variable cost of each component is $1,800p,$ and the components are sold for $3,200p$ each. The company sold $5,600$ components during the prior year. $(p$ denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth $0\mathrm{.}104$ U$.$S$.$ dollar. In the following requirements, ignore income taxes.$)$

Required:

Compute the break$-$even point in units. $($Round your answer to the nearest whole number.$)$

What will the new break$-$even point be if fixed costs increase by $20$ percent? $($Round your answer to the nearest whole number.$)$

What was the company's net income for the prior year?

The sales manager believes that a reduction in the sales price to $2,700p$ will result in orders for $800$ more components each year. What will the break$-$even point be if the price is changed? $($Round your answer to the nearest whole number.$)$

Should the price change discussed in requirement $4$ be made?

$\backslash$table$[[1.,$Break$-$even point,components$],[2.,$New break$-$even point,components$],[3.,$Net income,$p$