Farris Electronics is considering expanding its product line to include portable radios. Management projects that radios would sell for \($60.00\) each. Variable costs are projected to be \($25.00\) with total fixed costs of \($42,000.00\) per month.

Instructions:

1. Calculate the contribution margin per unit.

2. Calculate the unit sales breakeven point.

3. Calculate the sales dollar breakeven point.

4. Farris has projected that it could sell 1,000 units per month. Should the company expand its product line to sell the portable radios? Support your answer.