Here is the problem: The management of Shoelace Company wants to know the break-even point for its new line of tennis shoes under each of the following independent assumptions: Total Fixed Costs 1. Variable Cost per Unit $36 $25 $25 $400,000 $400,000 $300,000 2. 3. The selling price is $70 per pair of shoes. (Each pair of shoes is one unit.) Required: A. Compute the break-even point in units for each of the three independent cases. B. Compute the break-even point in sales dollars for each of the three independent cases. C. Compute the level of sales dollars required to achieve a net income of $140,000 for each of the three independent cases. D. Ignoring the data from the table above, compute how many units would need to be sold if the fixed costs were $500,000, the variable costs were $39 per unit, the selling price was $65 per unit and they wanted to achieve a net income of $60,000, A1 Fixed costs Contribution margin per unit Break-even point in units A2 Fixed costs Contribution margin per unit Break-even point in units Fixed costs Contribution margin per unit Break-even point in units B1 Fixed costs Contribution margin percentage Break-even point in sales dollars B2 Fixed costs Contribution margin percentage Break-even point in sales dollars B3 Fixed costs Contribution margin percentage Break-even point in sales dollars C1 Foxed costs target profit Contribution margin percentage Sales dollars required for targeted profit C2 Fixed costs + target profit Contribution margin percentage Sales dollars required for targeted profit C3 Fixed costs target profit Contribution margin percentage Sales dollars required for targeted profit D Fixed costs + target profit Contribution margin per unit Units required for targeted profit