Reference no: EM132652428

Problem - Currently, the selling price per unit of product X is $340. The variable cost per unit is $280 and the total fixed costs are $630,000. If the company required a net profit of $36,000, how many units would need to be sold? Calculate the following:

1. The contribution margin per unit

2. The number of units to be sold to break even

3. The total sales achieved at break-even

4. The break-even in units required to make $36,000 net profit

Using the above information, a proposal is being evaluated to increase the unit selling price to $360. Calculate the following:

1. The number of units to be sold to break even based on the new selling price

2. The total sales achieved at the new selling price to break even