managerial accounting help -- break even point in units?

Cost-volume-profit analysis looks at the relationship between variable and fixed costs, the volume of sales, and contribution margin. Contribution margin is the difference between selling price and variable cost. Each product contributes that much toward covering the fixed cost and providing a profit.

The break-even point is the level of sales where revenue equals expenses. Some expenses are fixed regardless of the level of production. Some expenses vary with the level of production. Whether you produce 1 unit or 100 units, the rent on the production facilities stay the same, and supervisor salary of the production department stays the same. But if it cost $1 of material to produce each unit, material cost will be $60 for producing 60 units. This relationship is easily expressed with a formula:

Sales Revenue = Fixed Cost + Variable Cost * Units of production

The formula can be used to calculate production volume for a given target profit by expressing revenue as the price per unit.

S(X) = FC + VC(X) + Profit, where X is the number of units.

Or

Profit = S(X) - FC - VC(X)

Solving for X gives you the number of units of production needed to break even or to generate the target profit. This works within a relevant range of production. If production increases beyond the relevant range, fixed costs are no longer fixed at the current level. For example, to increase production beyond a certain point may require more equipment or another factory, causing fixed costs to increase to a new level.

Your variable cost is $240 per unit. All other costs are fixed.