5. Management estimates that direct-labor costs will increase by 8 percent next year. How many units will the company have to sell next year to reach its break-even point? Note: Do not round intermediate calculations. Break-even point units 2. What is the company's break-even point in sales dollars? Note: Do not round your intermediate calculations. Required information PR 7-40 (Static) Basic CVP Relationships (LO 7-1, 7-2, 7-4) [The following information applies to the questions displayed below.] Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as follows: In the following requirements, ignore income taxes. PR 7-40 (Static) Part 1: What is Serendipity Sound's break-even point in units? Required: 1. What is Serendipity Sound's break-even point in units? Note: Do not round intermediate calculations. 3. How many units would Serendipity Sound have to sell in order to earn $260,000 ? Note: Do not round intermediate calculations. 4. What is the firm's margin of safety? 5. If the company's direct-labor costs do increase by 8 percent, what selling price per unit of product must it charge to maintain the same contribution-margin ratio? Vote: Do not round intermediate calculations. Round your answer to 2 decimal places