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Enable Editing Ryan Company has a maximum capacity of 300,000 units per year. Variable manufacturing cost is 512 per unit. Fixed manufacturing overhead is 5635.000 per year. Variable selling and administrative costs are 56 per unit, and fised selling and administrative cost are $315,000 per year. The current sales price is $26 per unit 1. What is the breakeven point is units and sales dollars! 2. How many units must be sold to earn a target profit of $275,000 per year? 3. A strike at a major supplier has caused asbortage of materials, se the current year's production and sales are limited to 160.000 units. Top management is planning to reduce fixed costs by 10% (from original total) to partially offset the effect of the reduced sales on profits. Variable cost per unit is the same as last year (see above). The company has already sold 40,000 units at selling price of $26 per unit 3. How much of the fixed cost was covered by the total contribution margie of the first 40,000 units sold? b. What contribution margin per unit will be needed on the remaining 120,000 units to cover the remaining fixed costs and to earn a target profit of $240,000 this year! c. What would be your recommended selling price, assuming your variable eest are held constant, based upon your findings is (b)