Carolina Products has the following product information:
Sales price - $25.00 per unit
Variable costs - $15.00 per unit
Fixed costs (total) - $50,000
Required: Compute the following based on the above information:
A. How many units require to be sold in order to break-even?
B. Compute the raise in net income if an additional 1,000 units over the break-even point are sold.
C. How many units require to be sold in order to earn a target profit of $600,000? (Ignore taxes)