Fixed Variable $4.30 4.70 3.00 $225,000 0.75 97,000 47,500 16,200 87,000 12,300 15,000 $500,000 1.25 $14.00 7 8 Production costs 9 Direct materials 10 Direct labor 11 Factory overhead 12 Selling expenses 13 Sales salaries & commissions 14 Advertising 15 Miscellaneous selling expense 16 General expenses 17 Office salaries 18 Supplies 19 Miscellaneous general expense 20 21 22 Projected unit sales 23 Selling price per unit 24 Target net income 25 26 Answer Section 27 28 Contribution margin per unit 29 Contribution margin ratio 30 31 Break-even point (units) 32 Target net income (units needed to achieve) 33 34 Break-even point (sales dollars) 35 Target net income (sales dollars needed to achieve) 36 37 Projected net income 38 39 40 41 42 90,000 $20.00 $200,000 FORMULA1 FORMULA2 FORMULA3 FORMULA4 FORMULA5 FORMULA6 FORMULA7