Rogers 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:
a. Contribution margin per unit
b. Breakeven point in units
c. Units to be sold to earn the targeted operating income

a.
Selling price per unit $40.50
Variable cost per unit $ (12.50)
Contribution margin per unit $28.00

b.
Total fixed cost $182,000
Divide by Divide by
Contribution margin per unit $28.00
Breakeven in units 6,500

c.
Selling price per unit $40.50
Variable cost per unit $ (12.50)
Contribution margin per unit $28.00

Total fixed cost $182,000
Targeted operating income $518,000
$700,000
Divide by Divide by
Contribution margin per unit $28.00
Unit sales at target income 25,000