The management accountant at Essex Engineering has prepared the budget for 2003. All managers are concerned about the possibility of recession in Europe. In the last financial year nearly 80% of total output was exported to Europe.

	Fixed	Variable
Sales (100,000 units)			1,000,000
Expenses:
Raw materials		300,000
Direct labour		200,000
Overhead.	100,000	150,000
Selling and administrative	110,000	50,000
Total expenses	210,000	700,000	910,000
Operating profit			90,000

The break-even sales in units is:

Multiple Choice

• 30,000 units.

• 91,000 units.

• 60,000 units.

• 70,000 units.