Single Product; Change in Relevant Range: Desired Profit. Dallas Corporation wishes to market a new product for $1.50 per unit. Fixed costs to manufacture this product are $100,000 for less than 500,000 units and $150,000 for 500,000 units or more. The contribution margin ratio is 20 percent. How many units must be sold to realize net income of $100,000 from this product? (AICPA adapted 22 Multiple Products; Break Even Point: Desired Profit. Hardy Coppany incurs fixed costs of $600,000 per year. Its variable cost ratio is 60 percent. Calculate:

a. Break-even sales.

b. Sales required to earn a profit of $100,000.