Required Make appropriate assumptions about cost behavior and assume that direct labor costs vary directly with the number of units produced. How many units must the company sell in order to earn a pretax profit of $500,000 ? LO2,33 3-50 Introducing a new product, profitability Santos Company is considering introducing a new compact disc player model at a price of $105 per unit. Santos's controller has compiled the following incremental cost information based on an estimate of 120,000 units of sales annually for the new product: The sales manager expects the introduction of the new model to result in a reduction in sales of the existing model from 300,000 to 240,000 units. The contribution margin for the existing model is $20 per unit