Mixed costs can be split into two elements (using simple linear regression or by drawing a line on a scatterplot) and used to calculate contribution margin, breakeven points, and sales required to achieve specific net income targets. These two elements are: Product costs and period costs. Fixed costs and variable costs. Direct material costs and direct labor costs. Work-in-process costs and manufacturing overhead costs. Question 15 You can use the formula BES =$FC+$CM/ unit to calculate the amount of units you need to sell to breakeven (have a net income of zero) if you remember that $CM/ unit is the difference between the selling price per unit and the variable costs per unit. For example, if fixed costs are $400,000 per month, the selling price is $10 /unit, and the variable cost is $6/ unit; you can calculate the number of units you need to sell to break even. That number of units is 20,00040,00060,000100,000