Data related to 2018 operations for Constaga Products, a manufacturer of sewing machines:

Sales volume 5,000 units

Sales price $300.00 per unit

Variable production costs

Direct materials 75.00 per unit

Direct labor 20.00 per unit

MOH 10.00 per unit

Variable selling costs 15.00 per unit

Fixed production 342,500

Fixed selling & admin costs 310,500

1What is the current profit formula forConstaga Products?

2What is the breakeven point (in units)?

3 What is their current profit?

4 How many units would they have to sell to achieve an NOI of $350,000?

Management expects that costs per unit will rise next year as follows:

Direct material 5%

Direct labor 6%

Variable MOH 3%

Variable sellling 5%

Fixed costs 5%

5 What is the NEW profit formula forConstaga Products?

6 The sales manager doesn't think the sales price could be raised more than 3%.If thecompany raises the price to $309, how many units would they have to sell to achieve apre-tax profit of $350,000 given the expected increase in costs?

7 What if the sales manager believed the sale price could be raised but doesn't think thecompany can sell more than 5,000?What would the sales price need to be to achievethe $350,000 NOI given the expected increase in costs? (Round the selling price up to a whole number.)