King Co. is planning production for the coming year. The information to be used is based on a projection of cost information for the current year. Projections of the following costs are as follows:

Variable Cost Per Unit:

Direct Materials...................................$21.20

Direct Labor........................................14.40

Factory Overhead.................................13.60

Selling Costs.......................................10.80

Total................................................$60.00

Fixed Cost Estimates:

Production Costs.............................$285,600

Selling and Administrative Expenses.......442,400

Total............................................$728,000

King Co. sells it product for $140.00 per unit. Compute the following, showing your calculations:

1. The Breakeven Point in units:

2. Using the same approach and assuming that fixed costs are increased by $22,000, and sales price per unit is decreased by $20.00, compute the Breakeven Point in sales dollars.

3. Using the original figures, how many units must be sold to produce a profit of $20,000.