ST-3. (Fixed costs and the break-even point) Bonaventure Manufacturing expects to earn $210,000 next year after taxes. Sales will be $4 million. The finn's single plant is located on the outskirts of Olean, New York. The firfn manufactures a combined bookshelf and desk unit used extensively in college dormitories. These units sell for $200 each and have a variable cost per unit of $150.

Bonaventure experiences a 30 percent tax rate.

a.ˇ What are the finn's fixed costs expected to be next year?

b. Calculate the finn's break-even point in both units and dollars.