Break-Even Sales

Currently, the unit selling price of a product is $340, the unit variable cost is $280, and the total fixed costs are $960,000. A proposal is being evaluated to increase the unit selling price to $380.

a. Compute the current break-even sales (units).

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $380, and all costs remain constant.