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?

Sunland's managers have stipulated that they will not authorize production beyond the next fiscal year unless the after-tax profit from the new product is at least $154,500. How many units of the new product must be sold in the next fiscal year to ensure continued production?

Regardless of your answer in previous part, assume that more than the allowed production of51,500units will be required to meet the $154,500net income target. Given the production constraint (maximum of51,500units available), what price must be charged to meet the target income and continue production past the next fiscal year?