How many units need to be sold to earn an annual operating

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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?

Reference no: EM132660931

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