Aladdin Inc. specializes in the production of magic carpets and genie bottles. These two products are handled by separate divisions. Due to a decrease in demand for magic carpets (thanks to Uber, Lift and other transportation competitors), Aladdin is reevaluating its sales strategy for magic carpets and to do so needs to have a few variables for their analysis. The management accounting team knows that the selling price per magic carpet is $250 and has determined that at this price, current sales for the magic carpet division are $1,800,000. Fixed costs are $320,000 and a member of the team has stated that the contribution margin at breakeven is $80 per unit.

What are total variable costs at the breakeven point?

What are the breakeven units?