Question: Problem 1 (10 points) Slow Movers developed the following unit amounts for one of its divisions that manufacturers one product: Per Unit Sales price $90
Problem 1 (10 points) Slow Movers developed the following unit amounts for one of its divisions that manufacturers one product: Per Unit Sales price $90 Variable cost 54 Contribution margin $36 Total fixed costs $432,000 Instructions Answer the following independent questions and show computations to support your answers. a. How many units must be sold to break-even? (3 points) b. What are the total sales in dollars that must be generated for the company to earn a profit of $50,400? (3 points) c. If the company is presently selling 14,000 units, but plans to spend an additional $135,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making? (4 points)
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