Need help with #6

Reading Questions: According to the article, the RealReal is aiming to achieve an adjusted EBITDA (Earnings before interest, tax, depreciation and amortization) of $100 million (Consider this as pre-tax profit). The company has fixed costs of $150 million, variable costs of $800 per unit, and sells its consignment goods for an average price of $1,200 per unit. 1. What is The RealReal's contribution margin per unit? - A) $400 - B) $800 - C) $1,200 - D) $1,000 2. How many units does The RealReal need to sell to break even? - A) 187,500 units - B) 150,000 units - C) 200,000 units - D) 250,000 units 3. If The RealReal wants to achieve an adjusted EBITDA of $100 million, how many units does it need to sell? - A) 312,500 units - B) 375,000 units - C) 416,666 units - D) 625,000 unit GUCCI JU In the article, it is stated that: "In 2021, 62% of the company's operating expenses were considered support functions, and therefore primarily fixed costs..." While "operating expenses" are not directly equivalent to total revenue, this does give us an idea about the proportion of fixed costs within their operating expenses. So assume fixed costs represent 62% of total costs (=operating expenses) for RealReal. In Yahoo Finance (https://finance.yahoo.com/quote/REAL/financials?p=REAL), the total operating expense for 2022 was $537,398. This means fixed costs should be 0.62$537,398= $333,386.76. Assume that RealReal mainly sells Gucci and Chanel handbags. 4. Assume that for every Gucci bag sold by The RealReal they earn a contribution margin of $200, while for every Chanel bag sold, the contribution margin is $300. If in 2022 , RealReal sold 1,500 Gucci bags and 1,000 Chanel bags, calculate the weighted average contribution margin per unit for the year from these two products. A) $233.33 B) $240.00 C) $266.67 D) $275.00 5. Using the fixed costs of $333,386.76, determine the combined breakeven point in terms of units for Gucci and Chanel bags, using the weighted average contribution margin per unit. A) 1,389 units B) 1,667 units C) 2,000 units D) 2,160 units 6. If RealReal wishes to achieve a target profit (pre-tax) of $100,000 in 2023 , how many units combined of Gucci and Chanel bags do they need to sell, assuming all other conditions remain the same? A) 1,805 units B) 1,980 units C) 2,133 units D) 2,200 units