lonic Charge is a newly organized manufacturing business that plans to manufacture and sell $50,000$ units per year of a new product.

The following estimates have been made of the company's costs and expenses $($other than income taxes$)$:

Required:

a$.$ What should the company establish as the sales price per unit if it sets a target operating income of $$500,000$ by producing and

selling $50,000$ units during the first year of operations? $($Hint: First compute the required contribution margin per unit.$)$

b$.$ At the unit sales price computed in part a$,$ how many units must the company produce and sell to break even? $($Assume all units

produced are sold.$)$

c$.$ What will be the margin of safety $($in dollars$)$ if the company produces and sells $50,000$ units at the sales price computed in part a$?$

d$.$ Assume that the marketing manager thinks that the price of this product must be no higher than $$100$ to ensure market penetration.

Will setting the sales price at $$100$ enable lonic Charge to break even, given the plans to manufacture and sell $50,000$ units?

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What should the company establish as the sales price per unit if it sets a target operating income of $$500,000$ by producing

and selling $50,000$ units during the first year of operations? $($Hint: First compute the required contribution margin per unit.$)$