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Question 1 (6 points) : Delphit Company has developed a new product that will be marketed for the first time during the next fiscal year.

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Question 1 (6 points) : Delphit Company has developed a new product that will be marketed for the first time during the next fiscal year. Although the Marketing Department estimates that 35,000 units could be sold at $38 per unit, Delphi's management has allocated only enough manufacturing capacity to produce a maximum of 32,000 units of the new product annually The fixed costs associated with the new product are budgeted at $540,000 for the year, which includes $60,000 for depreciation on new manufacturing equipment, Half of the Manufacturing overhead is variable (SHOW your work) Data associated with each unit of product are presented as follows Direct material Direct labor $ 5.00 5.50 Manufacturing overhead 12 Variable Selling expenses 1.50 a What is the number of units of the new product that Delphi Company must sell dunng the next fiscal year in order to break even? b. Calculate the Break even point in sales (Assuming the company uses the selling pnce advised by the marketing department) cCompute the Delphi's contribution margin d Assuming the company has a target profit of 150 000 $ find the target profit in sales (Rounding to 3 decimal points)

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