Solve the following independent problems.

Required:

1. Sarah Company’s break-even point is 1,500 units. Variable cost per unit is $300; total fixed costs are $120,000 per year. What price does Sarah charge?

2. Jesper Company charges a price of $3.50; total fixed costs are $160,000 per year, and the break-even point is 128,000 units. What is the variable cost per unit?