Problem 18-5A (Part Level Submission)

Viejol Corporation has collected the following information after its first year of sales. Sales were $1,250,000on125,000units, selling expenses $250,000(40% variable and 60% fixed), direct materials $492,000, direct labor $27,900, administrative expenses $272,000(20% variable and 80% fixed), and manufacturing overhead $376,000(70% variable and 30% fixed). Top management has asked you to do CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.

Compute the break-even point in units and sales dollars for the current year.(Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

Break-even point in units units

Break-even point in dollars $