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Required with the number of units produced. How many units must the company sell in order to earn a pre Make appropriate assumptions about cost

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Required with the number of units produced. How many units must the company sell in order to earn a pre Make appropriate assumptions about cost behavior and assume that direct labor costs vary directly tax profit of $500,000? LO 2,3 3-50 Introducing a new product, profitability Santos Company is considering introducing a new compact disc player model at a price of $105 per unit. Santos's controller has compiled the following incremental cost information based on an estimate of 120,000 units of sales annually for the new product: Direct materials cost Direct labor cost Variable manufacturing overhead Sales commission Fixed cost $3,600,000 $2,400,000 $1,200,000 10% of sales $2,000,000 The sales manager expects the introduction of the new model to result in a reduction in sales of the existing model from 300,000 to 240,000 units. The contribution margin for the existing model is $20 per unit

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