1.Assuming Vacation first Manufacturing is considering adding another product line - molded doors (keeping the cabinet production constant at 1,200 units). How many units should the company sell to make adding the additional line economically feasible/attractive?Adding this line will require hiring a different type of worker which costs the company $15/hour.Vacation first Manufacturing estimated each unit takes 10 hours of labor, and $700 direct materials. This line is estimated to incur additional fixed MOH $456,250 for the year, and variable costs/expenses per unit are the same as the cabinet product line. This product line does not add additional fixed period costs, but shares the fixed period costs with the cabinetry line.The company estimated sales price of a set of doors would be $1,600.

Sales Less: Variable Costs Contribution Margin Less: Fixed Costs Net Operating Income Estimated direct labor hours Overhead rate (per direct labor hour} Direct material Direct labor Manufacturing Overhead Cost of manufacturing per unit Break-Even in unis: Break-even in Sales 1200 Per Unit 1600 Per Unit $1,202,500 3,696,000 4,493,500 831,000 -$3,3 24,500 $1,002.08 $1,603,333 51,002.08 3,080.00 4,358,667 2,724.17 -52,077.92 -2,755,333 51,722.08 831,000 63,586,333