The Armour Company had the following revenue and costs in the most recently completed fiscal year:
Total revenue …………………………$10,000,000
Total fixed costs …………………….. $2,000,000
Total variable costs ……………….... $6,000,000
Total units produced and sold ……… 1,000,000
a. What is the unit sales volume at the break-even point?
b. How many units must be produced and sold for the company to have a net income of $1,000,000 for the year?