Adams Company reported the following data regarding the product it sells:

Sales price	$	40
Contribution margin ratio		15	%
Fixed costs	$	144,000

Required

Use the contribution margin ratio approach and consider each requirement separately.

What is the break-even point in dollars? In units?

To obtain a profit of $36,000, what must the sales be in dollars? In units?

If the sales price increases to $50 and variable costs do not change, what is the new break-even point in dollars? In units?