2-7 Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as follows: *Equipment cost: $288,000/year *Equipment salvage value

at EOY5= $41,000 *Variable cost per unit of production: $14.55 *Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning horizon and the product can be sold for a unit price of$39.75, how many units must be produced and sold each year to break even? Contributed by Paul R. McCright, University of South Florida