1. Target Profit

Beard Company sells a product for $15 per unit. The variable cost is $10 per unit, and fixed costs are $1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000.

2. Break-Even Sales

Currently, the unit selling price of a product is $7,520, the unit variable cost is $4,400, and the total fixed costs are $23,400,000. A proposal is being evaluated to increase the unit selling price to $8,000.

• Compute the current break-even sales (units).
• Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

3. Break-Even Sales and Sales to Realize Operating Income

For the current year ended March 31, Cosgrove Company expects fixed costs of $27,600,000, a unit variable cost of $805, and a unit selling price of $1,150.

• Compute the anticipated break-even sales (units).
• Compute the sales (units) required to realize operating income of $5,175,000.