Single Product: Break-Even Point; Desired Profit. Bixley Company sells its product for $8 per unit. Variable costs are $6 per unit, and fixed costs total $12,000 per year.

a. Determine the break-even point in: 

1.

Units 2.

Dollars.

b. Determine the number of units that must be sold so that the firm will earn a net income of $40,000,