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ABC Inc. manufactures and sells toys. Price and cost data are as follows: $23.00 ........ Selling price per unit (package of 2 CDs)......... Variable costs
ABC Inc. manufactures and sells toys. Price and cost data are as follows: $23.00 ........ Selling price per unit (package of 2 CDs)......... Variable costs per unit: Direct material..... Direct labor Artist's royalties. Manufacturing overhead... Selling expenses.. Total variable costs per unit.... Annual fixed costs: Manufacturing overhead... Selling and administrative.. Total fixed costs............ Forecasted annual sales volume (120,000 units)............... $4.00 $4.00 $4.00 $3.00 $2.50 $17.50 $188,000 $272,000 $460,000 $2,760,000 Management estimates that direct-labor costs will increase by 8% next year. How many units will the company have to sell next year to reach its break-even point? (Please indicate a whole number; no decimal places. Example: 98600)
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