Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is $1. Costs are as follows:

Required:
1. Compute the break-even point in units using conventional analysis.
2. Compute the break-even point in units using activity-based analysis.
3. Suppose that Busy-Bee could reduce the setup cost by $100 per setup and could reduce the number of maintenance hours needed to 1,000. How many units must be sold to break even in this case? (Round answer up to whole units.)LO1

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Unit Variable Cost Driver Cost Level of Cost Driver Units sold Setups $0.65 $300 150 Maintenance hours $15 2,500 Other data: Total fixed costs (traditional) $140,000 Total fixed costs (ABC) 57,500