Plunda Co Is Planning Production for the Coming Year Plunda Co Sells 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:
$\begin{array}{|l|l|}\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 15.80 \\\hline \text { Direct labor } & 11.60 \\\hline \text { Overhead } & 18.40 \\\hline \text { Selling costs } & 8.20 \\\hline\\\hline \text { Fixed cost estimates: } & \\\hline \text { Production costs } & \$ 212,400 \\\hline \text { Selling and achninistrative costs } & 417,600 \\\hline\end{array}$

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