Required

1. Use the per-unit contribution margin approach to determine the break-even point in units and dollars.

2. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $224,100.

3. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 20,800 units, how much could it pay in salaries for salespeople and still have a profit of $224,100? (Hint: Use the equation method.)

Finch Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $46. $ Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 13 per unit 6 per unit $154,000 per year $170,000 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $224,100. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 20,800 units, how much could it pay in salaries for salespeople and still have a profit of $224,100? (Hint: Use the equation method.) 12,000 $ a. Break-even point in units Break-even point in dollars b. Required sales in units Required sales in dollars c. Fixed cost of salaries 552,000 20,300 933,800 $