$
Sales		900000
Less cost of goods sold:	384,000.00
Direct materials	204,000.00
Variable factory overhead	28,000.00	704,000.00
Gross profit		196,000.00
Less operating expenses:
Selling
Variable expenses	66,000.0
Fixed expenses	11,040.00	77,040.00
Administration		118,960.00
Variable expenses	50,000.00
Fixed expenses	23,200.00	73,200.00
Net profit		45,760.00

Perform cost volume profit (CVP) analysis to determine the breakeven point, e.g. the number of units that must be sold to breakeven and the dollar value at breakeven point if 180, 000 units are produced.

Confirm your calculations are correct by performing a break-even analysis using the contribution margin ratio method.