Breakeven Analysis and Planning Future Sales P9. Bar Company has a maximum capacity of 500,000 units per year. Variable manufacturing costs are $25 per unit. Fixed overhead is $900,000 per year. Variable sell- ing 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. REQUIRED 1. What is the breakeven point in (a) sales units and (b) sales dollars? 2. BUSINESS APPLCATIOt i. How many units must Bar Company sell to earn a profit of $600,000 per year! .UNCasA strike at one of the company's major suppliers has caused a shortage of materials, so the current year's production and sales are limited to 400,000 units Tc partiallpethe effect of the reduced sales on profit, man- agement is planning to ted the saroe ee last yea: The company hss alzeady sold 30,000 units at the regular sell- ing price of $36 per unit. ei costs to $1,000,000. Variable cost per unit is What amount of fixed costs was covered by the total contribution margin of the first 30,000 units sold? b. What contribution margin per unit will be needed on the remaining 370,000 units to cover the remaining fixed costs and to earn a profit of $290,000 this year