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Fast Imaging Fast Imaging is preparing to launch a new high-speed digital video camera. The projected sales price per unit is 2,000. The variable production

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Fast Imaging Fast Imaging is preparing to launch a new high-speed digital video camera. The projected sales price per unit is 2,000. The variable production costs are estimated at 800 per unit. The fixed production costs will be 7,800,000 per year if less than 12,000 cameras are sold and if we can work in one shift. If the sales volume per year is higher than 12,000 cameras, these fixed production costs will rise to 11,100,000. The sales commission rate is 5% of the sales price. The company has planned an advertising budget of 1,000,000 per year for this product. Question 1: What is the contribution margin per unit? Question 2: What will the breakeven point be if the company produces and sells less than 12,000 cameras? What will the breakeven point be if the company produces and sells more than 12,000 cameras? Question 3: A market study estimates sales of 10,000 cameras if the unit selling price is set at 2,000. What would be the operating profit of the company? Question 4: Fast Imaging estimates that if the price is lowered by 10%, sales would increase by 25% in volume. What would be the company's operating profit then

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