Current sales price=(1,345,000/5000)=$269 per unit
Current variable cost=(605,000/5000)=$121 per unit
Hence new variable cost=(121-4.6)=$116.4 per unit
Contribution margin=Sales-Variable cost
=(269-116.4)=$152.6 per unit
New fixed costs=(627,000+43200)=$670200
Target contribution margin=Fixed cost+Target profit
=(670200+36000)=$706200
Hence units to be sold=706200/152.6
=4627.79 units(Approx).
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