Rooney Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44.

Variable costs
Manufacturing	$	11	per unit
Selling		7	per unit
Fixed costs
Manufacturing	$	151,000	per year
Selling and administrative	$	192,200	per year

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 $184,600.

3. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 20,600 units, how much could it pay in salaries for salespeople and still have a profit of $184,600? (Hint: Use the equation method.)