7. Glareless Company manufactures and sells sunglasses.Price and cost data are as follows:

Selling price per pair of sunglasses

P25.00

Variable costs per pair of sunglasses:

Raw materials

P11.00

Direct labor

5.00

Manufacturing overhead

2.50

Selling expenses

1.30

Total variable costs per unit

P19.80

Annual fixed costs:

Manufacturing overhead

P192,000

Selling and administrative

276,000

Total fixed costs

P468,000

Forecasted annual sales volume (120,000 pairs)

P3,000,000

Income tax rate

40%

Glareless Company estimates that its direct labor costs will increase 8 percent next year.How many units will Glareless have to sell next year to reach breakeven?