J.T. Brooks and Company, a manufacturer of qual- ity handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Brooks, the president, to...

What is the breakeven point in units for 2017?

Extracted text: J.T. Brooks and Company, a manufacturer of qual- ity handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Brooks, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing cam- paign, the company's controller has prepared and presented Mr. Brooks with the following data for the current year, 2017: Variable cost (per bowl) Direct materials $ 3.00 Direct manufacturing labor Variable overhead (manufacturing, marketing, distribution, and customer service) 8.00 7.50 $ 18.50 Total variable cost per bowl Fixed costs $ 20,000 Manufacturing Marketing, distribution, and customer service Total fixed costs 194,500 $214,500 $ 35.00 $770,000 Selling price Expected sales, 22,000 units Income tax rate 40%