Plunda CoIs Planning Production for the Coming Year Plunda CoSells Its Product for $90

Essay

Plunda Co.is planning production for the coming year.The information to be used is based on a projection of cost information for the current year.Projections of the following costs are as follows:
$\begin{array}{lr}\text { Variable costs per unit: }\\\text { Direct materials } & \$ 15.80 \\\text { Direct labor } & 11.60 \\\text { Overhead } & 18.40 \\\text { Selling costs } & 8.20\\\\\text { Fixed cost estimates: }\\\text { Production costs } & \$ 212,400 \\\text { Selling and administrative costs } & 417,600\end{array}$ Plunda Co.sells its product for $90.00 per unit.Compute the following,showing your calculations:
a. The breakeven point in sales units
b. The breakeven point in sales dollars
c. The sales level in both sales units and dollars if a profit of $122,400 is projected