For the current year ending January 31, Ringo Company expects fixed costs of $178,500 and a unit variable cost of $41.50. For the coming year, a new wage contract will increase the unit variable cost to $45. The selling price of $50 per unit is expected to remain the same.

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

units

b.Compute the anticipated break-even sales (in units) for the coming year, assuming the new wage contract is signed.

units