Volodya Company reported the following data regarding the product it sells:

Sales price	$	50
Contribution margin ratio		20	%
Fixed costs	$	320,000

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 $40,000, what must the sales be in dollars? In units?

c.	If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units?