(CVP for a single product case) DD computing Company produces and sells one product, a calculator. The following information pertains to the prices and costs of the product.

calculaor

Price($)/unit $200

Variable costs ($)/unit -$110

Contribution margin/unit $90

Fixed costs/ year: $630,000

Target income /year: $1,800,000

Instructions:

1. Compute the break even point

a. In number of units,

b. In sales revenues ($).

2. Compute the number of units to make and sell to earn the target income.