3	ABC Co. sells product XYZ at $5.00 per unit. If fixed costs are $200,000 and variable costs are $3.00 per unit, how many units must be sold to break even?
	Unit contribution = $5.00 - $3.00 = $2.00
	Fixed costs / Unit contribution= $200,000 / $2.00 per unit = 100,000 units
4	Use the contribution margin ratio formula to determine the amount of sales revenue ABC must have to break even. All information remains unchanged: fixed costs are $200,000; unit sales price is $5.00; and unit variable cost is $3.00.
	Unit contribution = $5.00 - $3.00 = $2.00
	Contribution margin ratio = $2.00 $5.00 = .40
	Break-even revenue = $200,000 .4 = $500,000
	Computing Sales Needed to Achieve Target Operating Income
	Unit sales = Fixed costs + Target income / Contribution margin per unit
	Dollar sales = Fixed costs + Target income / Contribution margin ratio