Part a using cvp analysis to find breakeven points and

Question

Part A: Using CVP analysis to find breakeven points and target profit volumes

Mimi Incorporated has a targeted operating income of $518,000 for the upcoming year. The selling price of its single product is $40.50 each, while the variable cost per unit is $12.50. Fixed costs total $182,000.

Calculate the following:

1. Contribution margin per unit
2. Breakeven point in units
3. Units to be sold to earn the targeted operating income