A Company has the following revenue and cost budgets for the products.

Plastic frames Glass frames Budgeted unit sales 100,000 300,000 Sales price $10.00 $15.00 Direct materials (2.00) (3.00) Direct labor (3.00) (5.00) Fixed overhead (1.95) (2.60) Net income per unit $3.05 $4.40 The budgeted unit sales equal the current unit demand, and total fixed overhead for the year is budgeted at $975,000. Assume the company plans to maintain the same mix ratio. In numerical calculations, Multi frame rounds to the nearest cent and unit.

1. The total number of units that Multi frame needs to produce and sell break-even is : a. 150,000 units b. 354,545 units c. 177,273 units d. 300,000 units

2. The total number of units needed break even if the budgeted direct labor cost were $2 for plastic frames instead of $3 is: a. 154,028 units b. 144,444 units

c. 156,000 units d. 146,177 units

3. The total number of units needed to break even if sales were budgeted at 150,000 units of plastic frames and 300,000 units of glass frames with all other costs remaining constant is: a. 171,958 units b. 418,455 units c. 153,947 units d. 365,168 units