Toys-4-U manufactures a toy that it sells for $30 each. The variable cost per toy is $15 and the fixed costs for this product line are $96,000 per year. They estimate they can produce 10,240 toys per production period.a. What is the break-even point in units?Break-even point            toys per yearb. What is the break-even sales revenue?Break-even sales revenue           $ per yearc. What is the break-even volume as a percent of capacity? (Round your answer to 1 decimal place.)Break-even volume            %d. What would their net income be if they sold 9,200 toys?Net income           $ e. What level of output is required to have a net income of $24,000?Level of output            toys per year

a. The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit. The contribution margin per unit is the selling price per unit minus the variable cost per unit. In this case, the contribution margin per unit is $30 -$15 = $15. Therefore, the break-even point in units is$96,000 / $15 = 6,400 toys per year.

b. The break-even sales revenue is calculated by multiplying the break-even point in units by the selling price per unit. Therefore, the break-even sales revenue is 6,400 toys * $30 =$192,000 per year.

c. The break-even volume as a percent of capacity is calculated by dividing the break-even point in units by the total capacity and then multiplying by 100. Therefore, the break-even volume is (6,400 toys / 10,240 toys) * 100 = 62.5%.

d. The net income is calculated by subtracting the total costs (fixed costs + total variable costs) from the total revenue. The total revenue is the selling price per unit multiplied by the number of units sold, and the total variable costs are the variable cost per unit multiplied by the number of units sold. Therefore, the net income if they sold 9,200 toys is ($30 * 9,200) - ($96,000 + $15 * 9,200) =$-4,000.

e. To have a net income of $24,000, we need to find the level of output that would result in this net income. We can use the formula for net income and solve for the number of units sold. Therefore, the level of output required is ($96,000 + $24,000) /$15 = 8,000 toys per year.