Sales (12,000 prints at $.60)

LEss

Variable costs of goods sold (12,000 S.30).

Variable selling costs (12,000 X $.06)

Contribution margin

Less fixed costs

Operating profit

$7.20U

$3.600

720

4.320

$2,880

1,500

$1,380

The information above pertains to the income statement of U-Develop for the period ended March 31, 2023. Answer the following with required solutions or supporting computations.

1. What is the break-even in sales units?
2. What is the break-even in sales revenue?
3. Assuming the selling price and variable cost per unit will remain the same next month, how many units more will be needed to break-even if the fixed cost will increase by $500?