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Determine the solution of the following problem
Problem- MyCal Company sells a product at $25/unit that generates $10 in contribution margin for each unit sold. Last year they made a profit of $20,000 and variable costs totaling $180,000. Due to the downturn in the economy, MyCal is considering a price reduction of $2/unit.
Part 1- How many more units must be sold at the reduced selling price in order to earn the same profit as last year?
I need assistance to find the number of units to be sold.
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