Stuart Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $50.

Variable costs
Manufacturing	$	11	per unit
Selling		8	per unit
Fixed costs
Manufacturing	$	166,000	per year
Selling and administrative	$	264,900	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 $189,100.

3. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,300 units, how much could it pay in salaries for salespeople and still have a profit of $189,100? (Hint: Use the equation method.)

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