Zachary Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs %24 48 25% $336,000 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 $60 and variable costs do not change, what is the new break-even point in dollars? In units?

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A: Contribution margin ratio = 100 - variable costs % = 100 - 60 = 40%

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