The following data refer to a single product, the TECHWHIZ, made by the Markdata Computer Company:

Sales price = $5,680

Direct materials cost (including purchased components) = $912

Direct labor cost = $237

Facilities costs (for a highly automated plant; mainly includes rent, insurance, taxes, and depreciation) = $2,392,400 per year

Required:

1. What is the contribution margin per unit?

2. What is the breakeven point, in units and in dollars? (Do not round intermediate calculations. Round up your answer to the next whole unit.)

3. What is the required level of sales (in units) if the company plans to increase facilities costs by 4% (to improve product quality and appearance) and has a desired before-tax profit (_B) of $240,000? (Do not round intermediate calculations. Round up your answer to the next whole unit.)

4. If the companys income tax rate is 25%, what unit sales are necessary to achieve an after-tax profit (_A) of $190,000? (Do not round intermediate calculations. Round up your answer to the next whole unit.)

1.	Contribution margin per unit
2.	Breakeven point in units
	Breakeven point in dollars
3.	Required level of sales in units
4.	Units sales