The Cardiff Company sells a single product for $40 per unit. Its total fixed cost amounts to $360,000 per year, and its variable cost per unit is $30.

Required: (1) Compute the following amounts for the Cardiff Company:

(a) Contribution margin per unit

(b) Break-even point in units

(c) The number of units that must be sold to earn $30,000 profit

(2) Repeat all computations in (1), assuming Cardiff decides to increase its selling price per unit to $45.Assume that the total fixed cost and the variable cost per unit remain the same.