ACCOUNTING 5301 For the current year ending December 31, Harp Company

| June 13, 2018

For the current year ending December 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70 per unit is expected to remain the same.Compute the break-even sales (units) for the current year.Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed.

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