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I know that there are already answers to this, but I don't understand HOW they...

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Accounting

I know that there are already answers to this, but I don't understand HOW they got those answers.

Data concerning Sumter Corporation's single product appear below:

image

Fixed expenses are $1,024,000 per month. The company is currently selling 8,000 units per month.

Required: a. Compute the companys breakeven point in units.

b. Compute the companys breakeven point in sales dollars

c. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 300 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Show your work!
Selling price...... Variable expenses Contribution margin....... Per Unit $220 66 $ 154 Percent of Sales 100% 30% 70%

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