Raritan Corporation makes a product that sells $330 per unit. The variable costs to make this product are $180 per unit. Fixed cost totals $750,000 per year. Raritan currently sells 10,000 units per year.

Raritan Corporation makes a product that sells for $330 per unit. The variable costs to make this product are $180 per unit, Fixed costs total $750,000 per year. Raritan currently sells 10,000 units each year. 1. Calculate the number of units that Raritan must sell to break even Break even units 2. Calculate the number of units that Raritan must sell to make $300,000 in profit. Planned sales units 3. Raritan has the option of buying new, more efficient production equipment to replace old machinery. Buying this equipment will reduce the labor hours required for production, thereby causing variable costs to drop to $150 per unit. However, there will be additional depreciation from buying the new equipment, causing fixed costs to increase to $870,000. How many units will Raritan have to sell to make $300,000 in profit, assuming they buy the new equipment? Planned sales units 4. Assume that Raritan does not buy the new equipment (use the original cost data). Raritan estimates that hiring one more sales person at S50,000 per year will increase sales by 5%. Should they hire the sales person? Please quantify your answer by filling in the following calculations. Additional units sold if sales person hired units Contribution margin/unit x additional units - S Less: Cost of additional sales person 100 Benefit from hiring sales person Should the sales person be hired (yeso)