Sales Needed for a Desired Profit Freedom, Inc., management had formed cost studies and projected the following annual cost based on 40,000 units of production and sales:

Required:
1. Compute Freedom's unit selling price that will yield a projected \(10 \%\) profit on sales if sales are 40,000 units.
2. Assume that management selects a selling price of \(\$ 30\) per unit. Compute Freedom's dollar sales that will yield a projected \(10 \%\) profit on sales assuming the above variable-fixed costs relationship are valid.

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Cost Total Annual Percent of Variable Portion of Total Annual Costs Direct Material................. Direct Labor............. $400,000 100% 360,000 75 Manufacturing Overhead 300,000 40 Selling, general and 200,000 25 administrative...