Problem #$3(10$ Marks$)$:

XYZ Inc. sells a single product for $$10$ per unit. Variable production costs are $$7$ per unit. Fixed overhead costs amount $$10,000$ per month. Variable selling costs are $$1$ per unit. Fixed selling costs are $$5,000$ per month. Last month, the company produced $10,000$ units and sold $8,000$ units.

a$)$ What is ABC $\text{'}$s contribution per unit?

b$)$ What is ABC $\text{'}$s contribution margin ratio?

c$)$ If sales were to increase by $3,000$ units, by how much would operating profit increase.

d$)$ What is the company's breakeven point in units?

e$)$ What is the company's breakeven point in sales dollars?

f$)$ How many units must the company sell to achieve a pre$-$tax profit of $$1,200,000?$