Kilner company reported the following data regarding the one product it sells:

Sales price $40

Contribution margin ratio 30%

Fixed costs $540,000 per year.

Required

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

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

b. To Obtain a $90,000 profit. What must the sales be in dollars? In units?

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