5. Shooz Manufacturers (information in Exercise 4) adds direct materials at the beginning of the process in the Production Department. The inventory at the beginning of the period was 40% complete with respect to conversion costs, which are incurred evenly throughout the manufacturing process. The ending inventory in process was 30% complete with respect to conversion costs.

a. Determine the direct materials equivalent units.

	Whole Units	Percent Materials Completed in Period	Equivalent Units for Materials
Beginning inventory in process		0%
Started and completed		100%
Transferred to Packaging Department
Ending inventory in process		100%
Total units to be assigned costs

b. Determine the conversion equivalent units.

	Whole Units	Percent Conversion Completed in Period	Equivalent Units for Conversion
Beginning inventory in process		40%
Started and completed		100%
Transferred to Packaging Department
Ending inventory in process		30%
Total units to be assigned costs

The Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000.

Required: Determine the

1. unit sales price, and
2. break-even points in sales units if the company desires a target profit of $36,000.