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Neptune Company has developed a small Inflatable toy It is anxlous to Introduce to Its customers. The company's Marketing Department estimates demand for the new toy will range between $20,000$ units and $40,000$ units per month. The new toy will sell for $$8\mathrm{.}00$ per unit. Enough capacity exists in the company's plant to produce $25,000$ units of the toy each month. Varlable expenses to manufacture and sell one unit would be $$4\mathrm{.}00,$ and Incremental fixed expenses assoclated with the toy would total $$34,000$ per month.

Neptune has also Identfied an outside supplier who could produce the toy for a price of $$3\mathrm{.}00$ per unit plus a fixed fee of $$67,000$ per month for any production volume up to $25,000$ units. For a production volume between $25,001$ and $55,000$ units, the fixed fee would Increase to a total of $$134,000$ per month.

Required:

C$$lculate the break$-$even point in unit sales assuming Neptune does not hire the outside supplier.

Note: Do not round your Intermedlate calculations.

$2.$ How much profit will Neptune earn assuming:

a$.$ It produces and sells $25,000$ units?

b$.$ It does not produce any units and Instead outsources the productlon of $25,000$ units to the outside supplier and then sells those units to its customers?

$3.$ Calculate the break$-$even polnt In unit sales assuming Neptune plans to use all of its productlon capacity to produce the first $25,000$ that it sells and also commits to hiring the outside supplier to produce up to $15,000$ additional units.

$4.$ Assume Neptune plans to use all of its production capacity to produce the first $25,000$ units it sells and also commits to hiring the outside supplier to produce up to $15,000$ additional units.

a$.$ What tot$\backslash$bar $($a$)$ l unit sales would Neptune need to achleve to equal the profit earned in requirement $2a?$

b$.$ What total unit s$$les would Neptune need to achleve to attaln a target profit of $$68,500$ per month?

c$.$ How much profit will Neptune earn If It sells $40,000$ units per month?

d$.$ How much profit will Neptune earn if it sells $40,000$ units per month and agrees to pay its marketing manager a bonus of $20$ cents for each unit sold above the break$-$even polnt from requirement $3?$

$5.$ If Neptune outsources all production to the outside supplier, how much profit will the company earn If it sells $40,000$ units?

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