Break-Even Analysis

Company A would like to receive a $8,000 target for the coming year.

1. How many units will it have to produce to reach the target? ______________________
2. How many dollars of sale will it have to sell to reach that target?__________________

Fill in the table and complete 1. and 2. below. Company Fixed cost Contribution Contribution Margin Margin Unit Ratio Break- Even Units Break- Even Dollars Unit Unit Selling Variable Price Cost $12 $9 $15 $9 $10 $6 A B $24,000 $54,000 $30,000