Janna Processing is a single-product entity, and provides the summary data shown relating to its product for the current year.

Selling price per unit ....................................................................  $ 50
Variable manufacturing costs ..................................................... $ 24
Annual fixed manufacturing costs ....................................... $500 000
Variable marketing, distribution and administration costs ......... $ 8
Annual fixed non-manufacturing costs ............................... $256 000
Annual volume ........................................................................ 48 000 units

Required

(a) Calculate the breakeven in units and sales dollars.

(b) Calculate the profit earned in the current year.

(c) Janna Processing is considering changes in plant operations and the production process for next year. The changes would result in a reduction of variable costs per unit of $6, and increase fixed manufacturing costs by $265 000. How many units would need to be sold to earn the same profit as the current year? Would you recommend the changes?