Millstone Company produces only one product. Normal capacity is 20,000 units per year, and the unit sales price is $5. Relevant costs are: Unit Variable Cost Total Fixed Cost Materials $1.00 Direct labor 1.20 Factory Overhead 0.50 $15000 Marketing expenses 0.30 5000 Administrative expenses 6000

Required: Compute the following: (1) The break-even point in units of product

(2) The break-even point in dollars of sales

(3) The number of units of product that must be produced and sold to achieve a profit of $10,000

(4) The sales revenue required to achieve a profit of $10,000