Millstone Company produces only one product. Normal capacity is 20,000 units per year, and the unit sales price is $5. Relevant costs are:

Required:
Compute the following:
(1) The break-even point in units of product
(2) The break-even point in dollars of sales
(3) The number of units of product that must be produced and sold to achieve a profit of $10,000
(4) The sales revenue required to achieve a profit of $10,000

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Unit Variable Cost Total Fixed Cost $1.00 1.20 .50 .30 Direct labor Factory overhead... Marketing expenses Administrative expenses. $15,000 5,000 6,000 ..