Question: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $1.60 Manufacturing overhead $0.40 Selling costs $2.00 Fixed costs $96,000

Selling price per unit $20.00

Variable costs per unit:

Direct materials $4.00

Direct manufacturing labor $1.60

Manufacturing overhead $0.40

Selling costs $2.00

Fixed costs $96,000

A. Calculate the number of units the company must sell to break even.

B. Calculate net profit/net lose if the company sold 9,500 units.

C. Calculate the number of units the company must sell to make a net profit of $144,000.

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