ibh.com/hm.t Problem 5-25 Changes in Fixed and Variable Expenses, Break-Even and Target Profit Analysis IL0S-4, 105-5, L05-6 Neptune Company produces toys and other items for use in beach and resort areas A smail, inflatable toy has come onto the market that the company is anxious to produce and sell The new toy will sell for $3.00 per unit. Enough capacity exists in the company's plant to produce 30,100 units of the toy each month Variable expenses to manufacture and sell one unit would be $1 9?, and fixed expenses awa the toy would total $49,185 per month associated with The company's Marketin that the g Department predicts that demand for the new toy will exceed the 30,100 units produoe. Additional manufadturing space can of $2.458 per month. Variable expenses in company is able to be rented from another company at a fixed expense S2.10 per unit, due to somewhat the rented tacility would total at less efficient operations than in the main plant o Required: 1. Compute the monthly break-even point for the new toy in unit sales and in doitlar sales Round unit" to 2 decimal places, intermediate and final answers to the nearest whole number) Break-even point in unit sales P Break-even point in dollar sales units 2. How many units must be sold each month to make a monthly profit of $11,4302 Round "per unie decimal places, intermediate and final answer to the nearest whole numbee) units Total units to be sold If the sales manager receives a bonus of 20 cents for each unit sold in excess of the braeven polnt. how many units must be sold each month to earn a return of 20% on the monthly investment in fixe expenses? (Round "per unit" to 2 decimal places, intermediate and final answer to the nearest whole number.) 3 units Total units to be sold