22 Contribution margin ratio Selling price per unit Units sold Fixed costs 20% 50 2,000 40,000 Compute: Break even in units Break even in dollars 23 Fixed costs Selling price per unit Variable costs per unit Desired net income 100,000 100 20 50,000 Compute: Required sales in units to earn desired net income Required sales in SS to carn desired net income 24 Fixed costs Selling price per unit Variable costs per unit Desired net income 200,000 500 100 100,000 Compute: Break even in units Break even in $$ Required sales in units to carn desired net income Required sales in $$ to earn desired net income 25 Fixed costs Contribution margin ratio Desired net income 100,000 40% 200,000 Compute: Break even in SS Required sales in $$ to earn desired net income 26 Fixed costs Variable costs as a % of sales Desired net income 400,000 20% 500,000 Compute: Break even in $$ Required sales in $$ to earn desired net income 27 Fixed costs Variable costs as a % of sales Current net income Desired net income 300,000 20% 500,000 1,000,000 Compute: Break even in $$ Current sales in SS Required sales in $$ to earn desired net income