Orion Inc., is a newly organized manufacturing business that plans to manufacture and sell 30,000 units per year of a new product. The following estimates have been made of the company's costs and...

Extracted text: Orion Inc., is a newly organized manufacturing business that plans to manufacture and sell 30,000 units per year of a new product. The following estimates have been made of the company's costs and expenses (other than income taxes): Variable per Unit Fixed Manufacturing costs: Direct materials..... Direct labor ... Manufacturing overhead.. $ 38 ...... 47 $440,000 Period costs: Selling expenses... Administrative expenses. ...... 360,000 $800,000 $100 Totals ... What should the company establish as the sales price per unit if it sets a target of earning an operating income of $400,000 by producing and selling 30,000 units during the first year of operations? (Hint: First compute the required contribution margin per unit.) . At the unit sales price computed in part a, how many units must the company produce and sell to break even? (Assume all units produced are sold.) (