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

Instructions 1. Compute the projected annual break-even sales in units.
2. Assume that the selling price increases by 15 percent, variable manufacturing costs decrease by 1 percent, variable selling and administrative expenses increase by 5 percent, and total fixed costs increase to $1,500,000. How many units must be sold to produce a profit equal to 12 percent of sales?

Transcribed Image Text:

Selling price Variable manufacturing costs Variable selling and administrative expenses Fixed manufacturing costs (based on 150,000 units) Fixed selling and administrative expenses (based on 150,000 units) Per Unit $30.00 10.00 9.00 4.00 4.00