Week 3 Financial Exercises Problem Set 2 Part 2 Complete the following problems using the following ratios: 0 0 Sales level at which operating income is zero 0 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 S - Fixed expenses + Operating Income / Contribution Margin Ratio (1) Calculate the break even number of units if Answer: 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% Anniver: 03) 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 560 per unit