XYZ Corporation is a manufacturer of computer equipment. The company is considering introducing a new product line and has provided you with the following information:

• Sales price per unit: $1,000
• Variable cost per unit: $700
• Fixed costs for the first year: $500,000
• Estimated sales volume for the first year: 10,000 units

a) Calculate the contribution margin per unit and the contribution margin ratio.

b) Calculate the breakeven point in units and in dollars.

c) Calculate the sales volume in units and in dollars that XYZ Corporation would need to generate a profit of $250,000.

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