Tropical Processing is a single-product entity and provides the following summary data relating to its product for 2020.

Selling Price per unit $ 80

Variable manufacturing costs $ 28

Annual fixed manufacturing costs $600,000

Variable marketing, distribution and administration costs $ 20

Annual fixed non-manufacturing costs $360,000

Annual volume 76 000 units

Required:

(a) Calculate the break-even in units and sales dollars for 2020

(b) Calculate the profit earned for 2020

The company is considering introducing a second product that would result in the following estimates:-

Product A Product B

Expected sales volume in units 70 000 30 000

Selling price per unit $80 $52

Variable costs per unit $48 $28

Annual Fixed Costs $1,243,600

Required:

(c) Calculate the number of units (in total and per product) required to break even.