Effect of converting variable to fixed costs Hoskins Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $32.

Required

a. Use the per unit contribution margin approach to determine the break-even point in units and dollars.

b. Use the per unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $60,000.

c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 32,000 units, how much could it pay in salaries for salespeople and still have a profit of $60,000? (Hint: Use the equation method.)