. Preparing a break-even analysis. Certain data related to the operations of the Nordon Corporation are given below.

Instructions 1. Compute the projected annual break-even sales in units.
2. Assume that the selling price increases by 20 percent, variable manufacturing costs increase by 10 percent, variable selling and administrative expenses remain the same, and total fixed costs increase to $208,000. How many units must be sold to produce a profit equal to 5 percent of sales?

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Selling price Variable manufacturing costs Per Unit Variable selling and administrative expenses Fixed manufacturing costs (based on 100,000 units) Fixed selling and administrative expenses (based on 100,000 units) $10.00 2.00 4.00 .50 1.30