Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. Sales price Variable costs Fixed costs 19 per unit 3 per unit per month Exercise 3-31 (Algo) Basic Decision Analysis Using CVP (LO 3-1 ) Required: a. What number must Warner sell per month to break even? b. What number must Warner sell per month to make an operating profit of $42,000 ? a. Break-even sales in units b. Number of units to be sold

Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. $ Sales price Variable costs Fixed costs 19 per unit 3 per unit 54,000 per month Exercise 3-31 (Algo) Basic Decision Analysis Using CVP (LO 3-1) Required: a. What number must Warner sell per month to break even? b. What number must Warner sell per month to make an operating profit of $42,000? IS a. Break-even sales in units b. Number of units to be sold