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Redhawk Inc. prepared the following projected income statement for next month based on 50,000 units sold (maintaining no inventory): Sales $750,000 Variable costs $500,000 Contribution
Redhawk Inc. prepared the following projected income statement for next month based on 50,000 units sold (maintaining no inventory): Sales $750,000 Variable costs $500,000 Contribution margin $250,000 Fixed costs $190,000 Net operating income $60,000 14. Redhawk is contemplating decreasing its selling price per unit by 20%, increasing its advertising budget by $60,000, and reducing its variable costs per unit by $1. If these changes are implemented, how many units do they need to sell to earn a target profit of $80,000?
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