Breakeven point, what-if analysis Air Peanut Company manufactures and sells roasted peanut packets to commercial airlines. Following are the price and cost data per 100 packets of peanuts:

Required(a) Determine Air Peanut's breakeven point in units.(b) How many packets does Air Peanut have to sell to earn $156,000?(c) Air Peanut expects its direct labor costs to increase by 5% next year. How many units will it have to sell next year to break even if the selling price remains unchanged?(d) If Air Peanut's direct labor costs increase by 5%, what selling price per 100 packets must it charge to maintain the same contribution margin-to-salesratio?

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Estimated annual sales volume = 11,535,700 packets Selling price $35.00 Variable costs: Raw materials $16.00 Direct labor 7.00 Manufacturing support Selling expenses Total variable costs per 100 packets 4.00 1.60 $28.60 Annual fixed costs: Manufacturing support Selling and administrative Total fixed costs $192,000 276,000 $468,000