1. Munoz Corporation produces products that it sells for $19 each. Variable costs per unit are $5, and annual fixed costs are $282,800. Munoz desires to earn a profit of $57,400.

Required

1. Use the equation method to determine the break-even point in units and dollars.

   1. Break-even point in units:

   2. Break-even point in dollars:

2. Determine the sales volume in units and dollars required to earn the desired profit.

   1. Sales Volume in units:

   2. Sales in dollars

2. Gibson Corporation sells products for $25 each that have variable costs of $15 per unit. Gibsons annual fixed cost is $232,000.

Required

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

a. Break-even point in units:

b. Break-even point in dollars