XYZ makes and sells bicycle parts. Last year XYZ sold 5,100 handlebars, generating sales of $110,000. This year they are considering a new pricing strategy with a target profit goal of $12,000. They determined that for every $2 increase to the selling price, a 100 decrease in unit sales was expected. Their total costs were $110,000 with fixed costs accounting for $70,000. This year, XYZ is considering changing the selling price to $27.

a) What were XYZ's average unit contribution margins ($) last year?

b) What was the breakeven Volume for XYZ last year?

c) Assuming that the demand function is linear, what is the slope of demand?

d )If XYZ decides to raise the price ( As they considering), what is the new expected sales volume( in units)?

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