The Suit Emporium Carries Brand Name Business Attire

The Suit Emporium carries brand name business attire.Each suit sells for the set price of $99.99.The variable cost per suit is $61.24 and the contribution margin is $38.75.The fixed expenses at Suit Emporium are $16,600.A new business apparel outlet has opened fifteen miles from the emporium's location and sales have decreased because local completion offers consumers similar products at lower price per unit.As a result of this decrease,the management at Suit Emporium is considering reducing the sales price per unit to attract the consumer base back to the emporium.The forecasted price per unit is $79.99.
1.What is the unit contribution margin using the forecasted sales price?
2.What is the new breakeven point in units?

A) $18.75;886 units
B) $28.50;1,022 units
C) $22.25;560 units
D) $15.65;730 units