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ABC Inc. manufactures and sells toys. Price and cost data are as follows: Selling price per unit (package of 2 CDs)...................................... $27.00 Variable costs per

ABC Inc. manufactures and sells toys. Price and cost data are as follows:
Selling price per unit (package of 2 CDs)...................................... $27.00
Variable costs per unit:
Direct material............................................................................................................... $6.00
Direct labor...................................................................................................................... $6.00
Artist's royalties.............................................................................................................. $4.50
Manufacturing overhead.......................................................................................... $4.00
Selling expenses............................................................................................................ $1.00
Total variable costs per unit............................................................ $21.50
Annual fixed costs:
Manufacturing overhead.......................................................................................... $190,000
Selling and administrative....................................................................................... $300,000
Total fixed costs................................................................................ $490,000
Forecasted annual sales volume (120,000 units)......................... $3,240,000

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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