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Discuss how many units would have to be sold

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Reference no: EM131806856

Original Data: Sales (19,500 units at $30 per unit) $585,000

Variable expenses 409,500 / 19,500 = $21 per unit

Contribution margin 175,500 / 19,500 = $9 per unit

Fixed expenses 180,000

Net operating loss $(4,500)

The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $9,750?

Reference no: EM131806856

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