Analyzing change in sales price using the contribution margin ratio Hugh Company reported the following data regarding the product it sells:

Required
Use the contribution margin ratio approach and consider each requirement separately.
a. What is the break-even point in dollars? In units?
b. To obtain a profit of $36,000, what must the sales be in dollars? In units?
c. If the sales price increases to $50 and variable costs do not change, what is the new breakeven point in dollars? In units?

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Sales price Contribution margin ratio Fixed costs S40 15% $144,000