Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn a profit of $150,000.

Required

Use the equation method to determine the break-even point in units and dollars.

Determine the sales volume in units and dollars required to earn the desired profit.

a. Break-even point in units \begin{tabular}{|l|l|} \hline & Break-even point in dollars \\ \hline b. & Sales volume in units \\ \hline & Sales in dollars \\ \hline \end{tabular}