The Company reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 20% Fixed costs $264,000 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 profit of $48,000, what must the sales be in dollars? In units?

c. If the sales price increases to $64 and variable costs do not change, what is the new break-even point in dollars? In units?