The Robinson Lawn Chair Company produces and sells a single high-priced lawn chair and in fiscal 2016 the company produced and sold 30,000 units. The 2016 income statement of the company reported the following:

Sales $1,800,000

Variable Costs $1,350,000

Fixed Costs $240,000

Income before Taxes $210,000

(a) Compute the contribution margin per unit.

(b) How many units must be sold to break even?

(c) Compute the new breakeven point if the price of unit is increased to $65 and additional $102,000 per year will be paid for advertising.

(d) Assuming a tax rate of 25%, how many units must be sold to gain an after tax profit of $200,000