1. High-Low Cost Estimation and Profit Planning Comparative 2012 and 2013 income statements for Dakota Products Inc. follow:

Unit sales	6,000	9,000
Sales revenue	$ 78,000	$ 117,000
Expenses	(70,000)	(85,000)
Profit (loss)	$ 8,000	$ 32,000

(a) Determine the break-even point in units. Answer

units

(b) Determine the unit sales volume required to earn a profit of $12,000.

Answer

units

2.

Multiple Product Break-Even Analysis Presented is information for Stafford Company's three products.

Unit selling price	$7	$9	$7
Unit variable costs	(4)	(5)	(1)
Unit contribution margin	$3	$4	$6

With monthly fixed costs of $306,000, the company sells two units of A for each unit of B and three units of B for each unit of C. Determine the unit sales of product A at the monthly break-even point. Answer

units