Break-even: Single product; profit calculation; second product introduced.

Pruton processing is a single-product entity , and provides the following summary data relating to its product for 2015.

Selling price per unit $40

Variable manufacturing costs $14

Annual fixed manufacturing costs $300,000

Variable marketing, distribution and administration costs$10

Annual fixed non-manufacturing costs $180,000

Annual Volume 38,000 units

Required:

A. Calculate the break-even in units and sales dollars for 2015

B. Calculate the profit earned in 2015

C. Pruton processing is considering introducing a second product that would result in the following estimates

A B

Expected sales volume in units 35,000 15,000

Selling price per unit $40 $26

Variable costs per unit$24 $14

Annual fixed costs 621,600

A. Calculate the number of units (in total and per product) required to break-even

B. Calculate the number of units (in total and per product) - in the first year of the two products - to earn the same profit as for 2015.