Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $2,000,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $250,000. a. Break-even point in sales units 100,000 units b. Break-even point in sales units if the company desires a target profit of $250,000 22,500 units Feedback a. Unit sales price minus unit variable costs equals unit contribution margin. Fixed costs divided by unit contribution margin = break-even point in units. b. (Fixed costs + Target profit) divided by unit contribution margin = sales units.