Hurst Co$.$ manufactures and sells a single product. Price and cost data regarding this product are as follows:

Selling Price $$40$ per unit

Variable Manufacturing Costs $$20$ per unit

Variable SG$+$A $$6$ per unit

Expenses:

Fixed MOH $$208,000$ per year

Fixed SG$+$A $$324,000$ per year

Required:

a$)$ What is the break$-$even point in units per year?

b$)$ How many units need to be sold to earn an annual operating income equal to $10\%$ of Sales?

c$)$ In the current year, the company sold $43,000$ units. Due to competition, management will be

forced to lower the selling price by $10\%$ next year. How many units must be sold next year to earn the

same operating income as was earned in the current year?

d$)$ Provide $2$ potential options for reducing the number of break$-$even units calculated above

other than increasing or keeping the same sales price.