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X Co. manufactures and sells a single product. Price and cost data regarding this product are as follows:
Selling price $40 per unit
Variable manufacturing cost $20 per unit
Variable selling & administrative expenses $6 per unit
Fixed manufacturing overhead $208,000 per year
Fixed selling & administrative expenses $324,000 per year
Problem 1: What is the break-even point in units per year?
Problem 2: How many units need to be sold to earn an annual operating income equal to 10% of sales?
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