Q$6$: Erickson, Inc. makes computer bags that sell for $$20$ each. For the coming year, management expects fixed costs to be $$225,000.$ Variable costs are $$14$ per unit.

Instructions

$($a$)$ What is their contribution margin per unit?

$($b$)$ Compute the break$-$even point in units.

$($c$)$ Compute the break$-$even point in sales dollars.

$($d$)$ What is their net income at the break$-$even point?