problem 8-4 break even analysis

sales(units) 50,000

price per unit $?

unit variable costs:

variable manufacturing cost $4.25

variable selling expenses $2.25

Fixed costs:

Manufacturing overhead $100,000

sales salaries $125,000

Administrative salaries $50,000

1. Calculate the break-even price for the company. Assume break-even sales of 50,000 units.

2. For the year just ended, the margin of safety was $(158,088). to improve profitability, senior management has proposed that production personnel should undergo additional training. As a result of this additional training, variable manufacturing cost per unit is expected to decrease by $0.75 and slaes units to increase by 20%, Assuming that costs behave as expected and that the selling price remains at the level you calculated in part 1, what is the maximum amount the company can pay for the training program in order to break even?

check figure: 1) $12/unit