Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing anew 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. Mc Cright,University of South Florida