Original Data: Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 / 19,500 = $21
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Original Data: Sales (19,500 units at $30 per unit) $585,000
Variable expenses 409,500 / 19,500 = $21 per unit
Contribution margin 175,500 / 19,500 = $9 per unit
Fixed expenses 180,000
Net operating loss $(4,500)
The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $9,750?
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