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LO4 Breakeven Analysis E7A. Meadowlands Design produces head covers for golf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing

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LO4 Breakeven Analysis E7A. Meadowlands Design produces head covers for golf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $200,500 and ixed general and administrative expenses of $80,000 for the year. Variable manufactur- ing and selling costs per set of head covers will be $8 and $12, respectively. Each set will sell for $30. 1. Compute the breakeven point in sales units. 2. Compute the breakeven point in sales dollars. 3. If the selling price is increased to $34 per unit and fixed general and administrative rgparea grc expenses are cut to $37,500, what will the new breakeven point be in units? 4. Prepare a graph to illustrate the breakeven point computed in 3

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