Slow Movers developed the following unit amounts for one of its divisions that manufacturers one product: Per
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Slow Movers developed the following unit amounts for one of its divisions that manufacturer’s one product:
| | Per Unit |
| Sales Price | $90 |
| Variable Cost | 54 |
| Contribution Margin | $36 |
| Total Fixed Costs | $432,000 |
1. How many units must be sold to break-even? Show your calculations to receive credit for your answer.
2. What is the total sale in dollars that must be generated for the company to earn a profit of$ 50,000-show calculations?
3. If the company is presently selling 14,000 units, but plans to spend an additional $135,000 on an advertising program, how many additional must the company sell to earn the same net income it is now making? Show calculations
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