Answer:
See below
Explanation:
The formula for break even point in unit and dollar is as sewn below;
Break even point in units = Fixed expenses / Contribution margin per unit
Where
Contribution margin per unit = Selling price per unit - Variable expense per unit
Contribution margin per unit = $17 - $9 = $8
But
Fixed expenses = $163,200
Break even point in unit = $163,200 / $8 = 20,400 units
Break even point in dollars = Fixed expense / Profit volume ratio
Where
Profit volume ratio = (Contribution margin per unit / Selling price per unit) × 100
Profit volume ratio = ($8/$17) × 100 = 47.06%
But
Fixed expense = $163,200
Break even point in dollars = $163,200 / 47.06% = $3,468
For desired profit
Sales volume in units = Fixed expense + Desired profit / Contribution margin per unit
= $163,200 + $25,200 / $8
= $188,400/$8
= 23,550 units
Sales volume in dollars = Fixed expenses + Desired profit / Profit volume ratio
= $163,200 + $25,200 / 47.06%
= $4,003
