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A New Product,an Easy to Store Guitar Stand,is Being Planned,with

Question 31

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A new product,an easy to store guitar stand,is being planned,with the following cost estimates: variable cost per unit,$9,and total fixed costs,$58,000.The projected sales price is $13 each.
a.Using the contribution margin approach,compute the number of units that must be sold to break even.
b.Using the same approach and assuming that fixed costs can be reduced by $8,000,how many units must be sold to produce a profit of $65,000?
c.Given the original information and the projection that 50,000 units can be sold,compute the selling price that the producer must use to obtain a profit of $150,000.

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