EX $20-13$ Break$-$even sales

Obj. $3$

Currently, the unit selling price of a product is $$1,000,$ the unit variable cost is $$600,$ and the total fixed costs are $$21,600,000.$ A proposal is being evaluated to increase the unit selling price to $$1,200.$

a$.$ Compute the current break$-$even sales $($units$).$

b$.$ Compute the anticipated break$-$even sales $($units$),$ assuming that the unit selling price is increased and all costs remain constant.