Complete the following problems using the following ratios:

• Sales level at which operating income is zero
• If sales above breakeven, then profit
• If sales below breakeven, then loss
• Fixed expenses = total contribution margin
• Total sales = total expenses

Break Even Point:Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit

Break Even Point:Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio

(1) Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.

(2) Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.

(3) Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit.