Q.1

Rooney Corporation produces products that it sells for $18 each. Variable costs per unit are $9, and annual fixed costs are $189,900. Rooney desires to earn a profit of $33,300.

Required

1. Use the equation method to determine the break-even point in units and dollars.

2. Determine the sales volume in units and dollars required to earn the desired profit.

a. Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars