Times NCW Roma Copy Format Painter AA- BIO Merge & Center $ - % 38 - Conditional Formatting Alignment Number Font board Problem Set 2, Part 2 K L M N B D E G F Week 3 Financial Exercises Problem Set 2, Part 2 Complete the following problems using the following ratios. 0 Sales level at which operating income is zero If sales above breakeven then profit If sales below breakeven, then loss o Fixed expenses - total contribution margin Total sales = total expenses 0 Break Even Point Unit Sold - Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point Sales S = Fixed expenses + Operating Income Contribution Margin Ratio (1) Calculate the break even number of units if the fixed expenses are $7.000 and the contribution margin is $14 per unit Answer: (2) Calculate the break even sales dollars if the fixed expenses are $7.000 and the contribution ratio is 40% Answer (3) Calculate the break even number of units with a target profit of S120.000 if the fixed expenses are $15.000 and the contribution margin swar 5 6 7