1) Sales Price Per Unit = $20

Variable Cost Per Unit = $12

Units Sold = 110,000 (10,000 Units above Break-Even Point)

Required:

a) Find Total Fixed Costs

b) Find Total Variable Costs

2) Variable Costs = $2,000,000 when 50,000 units are sold

Sales Price Per Unit = $100

Total Fixed Costs = $400,000

Target Profit = $100,000

Required: How many units must be sold to generate the target profit ?