Souta Company manufactures and sells its own brand of digital cameras. It sells each camera for $32. The company€™s accountant prepared the following data:

Required
a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars.
b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a $60,000 profit.
c. Suppose that variable selling and administrative costs could be eliminated by employing a salaried sales force. If the company could sell 32,000 units, how much could it pay in salaries for the salespeople and still have a profit of $60,000? (Hint: Use the equation method.)

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Manufacturing costs Variable Fixed Selling and administrative expenses Variable Fixed $15 per unit $150,000 per year $9 per unit $50,000 per year