Below is an income statement for Rocky Ltd.:
Total Per unit Sales $150,000 $15.00
Variable costs: Direct manufacturing 90,000 9.00 Manufacturing overhead 10,000 1.00 Selling and administration 5,000 0.50
CM 45,000
Fixed costs: Selling and administration 10,000 1.00 Manufacturing overhead 15,000 1.50 Pre-tax income $20,000 Required
a. What is the break-even in units? b.What is the break-even in dollars?