The owners have set a target profit of $25,000 per month ($300,000 per year) in order for them to

decide to devote themselves full time to JW Sports Supplies. Realizing from their projected income

statements that their current predictions fall short of the $25,000, they want to evaluate the impact of

alternative actions. Specifically, they want to evaluate each of the following factors, separately (in doing

so, assume all other factors stay the same as projected in the income statement):

B - What must the VC per unit be to achieve a profit of $25,000?

Sales (1500*100)	150000
Cost of Goods Sold
Manufacturing VC (1500*50)	75000
Manufacturing FC	27000
Gross Profit	48000
Operating Expenses
Operating Expenses VC (1500*10)	15000
Operating Expenses FC	13000
Operating Income	20000
Sales	150000
VC
Manufacturing VC	75000
Operating VC	15000
Contribution Margin	60000
FC
Manufacturing FC	27000
Operating VC	13000
Operating Income	20000