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What would be the required sales in units

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Reference no: EM132553420

Summer Sales, a software design company are considering a new product. They have provided the following information:

Selling price $125

Direct materials $35

Direct labour $50

Fixed costs $900 000

Estimated sales 30 000 units

Question a) Calculate the contribution margin per unit.

Question b) Calculate the break-even point in units.

Question c) If Summer Sales required a profit of $200 000, what would be the required sales in units?

Question d) To achieve the profit of $200 000 what would be the required sales dollars?

Reference no: EM132553420

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