Sales price per unit was=(1472880/5700)=$258.4 per unit
Variable cost per unit was=(627570/5700)=$110.1 per unit
Hence new variable costs=(110.1+4)=114.1 per unit
Hence Contribution margin=Sales-Variable cost
=258.4-114.1=$144.3 per unit
New fixed cost=(653,000-21600)=$631400
Required contribution margin=Fixed cost+Target profit
=(631400+31000)=$662400
Hence units to be sold=662400/144.3
=4590.44 units(Approx).
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