Recilia, last week you asked how many units we have to sell to cover our expenses. This is called the break-even point. If each unit produced and sold provides $ 100 toward covering fixed costs, and if total monthly fixed costs are $50,000, we would have to sell 500 units to break even-that is, $50,000 divided by $100. Lisa Recliamonth? What happens once we sell enough units to cover all of our fixed costs for the Good question! Once all fixed costs are covered for the month, each unit sold contributes $100 toward profit. Lisa I think I'm getting the hang of this. It will take 500 units in sales to break even 503 units for a month, profit will total $300? You've got it Reciliaand each unit sold above 500 results in a $100 increase in profit. So if we sell Lisa So if our goal is to make a profit of $30,000 per month (target profit), how many units must be sold? It takes 500 units to break even. We also know each unit sold above and beyond 500 units contributes $100 toward profit. Thus we would have to sell Lisa an additional 300 units above the break-even point to earn a profit of $30,000. This means we would have to sell 800 units in total to make $30,000 in profit. Wow, I'm not sure selling 800 units is realistic, but at least we have a better Reciliasense of what needs to be done to make a decent profit. Thanks for your help! 3.8 Calculate how many units need to be sold by the Snowboard Company to achieve a profit of $30,000