Due to erratic sales of its sole product- a disposable

Reference no: EM13600264

Due to erratic sales of its sole product- a disposable pocket camera-Markline Compnay has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below.

Sales (30,000 units X $20.00 per unit)...............$600.000
Variable expenses (12.00).................................(360,000)
Contribution margin.......................................... 240,000
Fixed expenses................................................ 250,000
Net operating loss.............................................$(10,000)

Refer to the original data .The marketing department thinks that a redesigned package for the camera would help sales. The new package would increase packaging costs by $0.75 per unit. Assuming no other charges, how many units would have to be sold each month to earn a profit of $9,200?

Reference no: EM13600264

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