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raile Gear Works sells a single gear for a price of $55.00 per unit. The variable costs of the gear are $23.00 per gear and

raile Gear Works sells a single gear for a price of $55.00 per unit. The variable costs of the gear are $23.00 per gear and annual fixed costs are $448,000.

Required:

a. What is the break-even level of annual sales for Braile Gear Works?

b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? (Do not round intermediate calculations.)

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