Question: Break even point in units = Fixed cost / Contribution Margin per unit Target Profit = (Fixed Cost + Target Profit) / Contribution Margin Per

Break even point in units = Fixed cost / Contribution Margin per unit Target Profit = (Fixed Cost + Target Profit) / Contribution Margin Per Unit

Break even point in dollars = Fixed cost / Contribution Margin % After tax target profit = (Fixed Cost) + (Target Profit) / (1 - Tax Rate) / Contribution Margin Per Unit

Break even on a cash basis = (Fixed cost - Non cash items) / Contribution margin per unit

Variable cost per unit $450

Selling price per unit $600

Total fixed costs $1800000

Tax Rate .50

Non cash expenses $300000

1)Solve the break-even point in units (show your work)

2)Solve the break-even volume in dollars (show your work)

3) Solve the target sales volume in units assuming a targeted net income before taxes of $225000 (show your work)

4) Solve the target sales volume in dollars assuming a targeted net income after taxes of $300000 (show your work)

5) Solve break even on a cash bases

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