BD's Company's first two years of operations, the company reported profit as follows (absorption costing basis):

	Year 1		Year 2
Sales (@ 30)	750,000		1,050,000
Less cost of goods sold:
Beginning stock Add cost of goods manufactured (@ 16)	0 480,000		80,000 480,000
Goods available for sale	480,000		560,000
Less ending stock (@ 16)		(80,000)	( 0 )
cost of goods sold		400,000	560,000
Gross margin		350,000	490,000
Less selling and administrative expenses*		187,500	202,500
Profit		162,500	287,500

* BD Company produces a single product; fixed manufacturing overhead costs are applied to the product on the basis of each years production. Variable selling and administrative expenses are 1.5 per unit sold, and fixed 150,000 each year.

The statements above show the results of the first two years of operation. In the first year, the company produced 30,000 units and sold 25,000 units; in the second year, the company again produced 30,000 units and sold 35,000 units.

The company's 16 unit product cost is computed as follows:

Direct materials	2
Direct labour	4
Variable manufacturing overhead per unit	2
Fixed manufacturing overhead costs per unit (240,000/30,000)	8
Unit product cost	16

Required:

Based upon marginal costing calculate:

1. the annual breakeven sales value; and
2. the activity level, in units, which will yield an annual profit of 350,000.