Swed 7 Problem 4 29 Changes in Fixed and Variable Expenses: Break-Even and Target Profit Analysis (L05-4. LOS-5, LO5-6] 10 DO Neptune Company produces toys and other teams for use in beach and resort areas. A small intatable toy has come onto the market that the company is anxious to produce and sell The new toy wil sel for $3 per unit Enough capacity exists in the company's plant to produce 16,000 units of the toy each month Variable expenses to manufacture and sell one unit would be $1.25, and Aved oportes associated with the toy would total $35,000 per month The company's Marketing Department predict the demand for the new toy wil exceed the 16,000 units that the company able to produce Additional manufacturing space can be rented from other company at a fedexpense of $1000 per month Variable expenses in the rorced facility would total $1.40 perunt, due to somewhat less efficient operations than in the main plant Required: 1. Compute the monthly break-even point for the new toy in un sales and indoor sales. Do not round intermediate calculations Roos Bakve poti Besponde 2. How many units must be sold each month to make a monthly proftor 512.000Do not round intermediate calculations.) Toti od 3. If the sales manager receves o bonus of 10 cent for each unit sold in excess of the break-wen poim, how many units must be sold each month to earn a return of 25% on the monthly investment in fed expenses? Do not round intermediate calculations) Totalt be told