Sormac Corporation manufactures and sells hand radios. Price and cost data are as follows: Selling price per unit	$30.00
Variable cost per unit Direct material	$9.80
Direct labor	$4.80
Manufacturing overhead	$7.20
Selling expenses	$1.90
Total Variable Cost per Unit		$23.70
Annual fixed cost Manufacturing overhead	$96,800
Selling and administrative	$42,400
Total Fixed Cost	$139,200
Forecasted annual sales volume (168,000 units)

1. What is Sormac Corporation break-even point in units?
2. What is the companys break-even point in sales dollars?
3. How many units Sormac Corporation have to sell in order to earn $168,000.

1. Management estimates that direct labor costs will increase by 20% next year but Manufacturing overhead annual fixed cost will be reduced to $79,300. How many units will the company have to sell to reach its break-even point?