Durant Manufacturers has performed extensive studies on its costs and production and estimates the following annual costs based on 150,000 units (produced and sold):Total AnnualCosts(150,000 units)Direct material . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000Manufacturing overhead . . . . . . . . . . . . . . . . . . 225,000Selling, general, and administrative . . . . . . . . . . 150,000Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $945,000Requireda. Compute Durant’s unit selling price that will yield a profit of $300,000, given sales of 150,000 units.b. Compute Durant’s dollar sales that will yield a projected 20 percent profit on sales, assuming variable costs per unit are 60 percent of the selling price per unit and fixed costs are $420,000.c. Management believes that a selling price of $8 per unit is reasonable given current market conditions. How many units must Durant sell to generate the revenues (dollar sales) determined in requirement (b)?