Question: UBC Company has a comparatively labor intensive process with old equipment. Fixed costs are $10,000/year and variable costs are $20/unit. Sales price is the same,

UBC Company has a comparatively labor intensive process with old equipment. Fixed costs are $10,000/year and variable costs are $20/unit. Sales price is the same, $28/unit. a. What is the contribution margin of the product? b. Calculate the breakeven point in unit sales and dollars. c. What is the operating profit (loss) if the company manufactures and sells (i) 1,500 units per year? (ii) 3,000 units per year? d. Plot the breakeven chart using foregoing figures.

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