Sunland Company has developed a new product that will be marketed for the first time next year. The product will have variable costs of $25per unit. Although the marketing department estimates that72,100units could be sold at $45per unit, Sunland's management has allocated only enough manufacturing capacity to produce a maximum of51,500units a year. The fixed costs associated with the new product are budgeted at $927,000for the year. Sunland is subject to a40% tax rate.

Calculate contribution margin per unit.

How many units of the new product must Sunland sell in the next fiscal year to break even?

What is the maximum net income that Sunland can earn from sales of the new product in the next fiscal year?