Slow Movers developed the following unit amounts for one of its divisions that manufacturers one product:

Per Unit

Sales price $90

Variable cost 54

Contribution margin $36

Total fixed costs $432,000

Answer the following independent questions and show computations to support your answers.

a. How many units must be sold to break even?

b. What is the total sales in dollars that must be generated for the company to earn a profit of $50,400?

c. If the company is presently selling 14,000 units, but plans to spend an additional $135,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making?