Problem
Reeses Co. manufactures plastic milk crates. At the start of the current year, the company had no inventory. During the year, it produced 5,600,000 milk crates. It sold 5,000,000 crates for $2.25 each. Variable manufacturing costs were $0.85 per unit, and variable general, selling and administrative costs were $0.15 per unit. Fixed manufacturing costs were $2,300,000, and fixed general, selling and administrative costs were $1,100,000. What is the breakeven point in unit sales?