bar company has a maximum capacity of 500,000 units per year. manufacturing costs are $25 per unit. Fixed overhead is $900,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $36 per unit.

Need to find the Break even unit and break even dollars.

Target sales units

Calculation of fixed cost covered

Calculation of CM per unit required on remaning units And proof.