Preparing a break-even analysis. Certain data related to the operations of the Myers Corporation are given below.

Instructions 1. Compute the projected annual break-even sales in units.
2. Assume that the selling price increases by 15 percent, variable manufacturing costs decrease by 1 percent, variable selling and administrative expenses increase by 5 percent, and total fixed costs increase to $1,500,000. How many units must be sold to produce a profit equal to 12 percent of sales?

Selling price Variable manufacturing costs Variable selling and administrative expenses Fixed manufacturing costs (based on 150,000 units) Fixed selling and administrative expenses (based on 150,000 units) Per Unit $30.00 10.00 9.00 4.00 4.00