(AiCPA adapted) CVP analysis Flear Company has a maximum productive capacity of 210,000 units per year. Variable manufacturing costs are $11 per unit. Fixed factory overhead is $360,000 per year. Variable selling expenses are $3 per unit and fixed selling expenses are $252,000 per year. The unit sales price is $20. In 1992 the company produced and sold 150,000 units.

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REQUIRED a. Calculate the break-even point in dollars. b. How many units must be sold to earn a net income before taxes of $60,000 per year? c. How many units must be sold to earn a net income before taxes of 10 percent of sales?