Now it's your turn again. I'm going to give you the opportunity to practice. Company A sells a product whose price per unit is $100, variable costs per unit are $60, and total fixed costs for the year are $100,000. How many units must Company A sell to make a $300,000 profit? But you can do this. Take a few minutes. Give it a try. And then come back we'll see how you did. I'll meet you at the light board. One, two, three go. Sorry about that. I had to get head start on you you guys are getting so quick at this that I knew I needed to get a jump on you. So,all right,let's take a look, we are now looking for the number of units that we need to sell to reach this target profit of $300,000. So I have our handy profit formula up here on the light board and then, I've decomposed it into these five components. Remember price, variable cost per unit, number of units, fixed cost, and target profit. If we know four of those five, we can solve for the fifth. We're solving for the number of units that would give us that target profit of $300,000, given all these other pieces of information. So let's plug our facts into this equation in their respective locations, and we'll solve to see how many units we need to sell to reach that profit. Okay, our price is $100. Times our quantity, well, we don't know that, that's exactly what we're trying to solve for. Our variable cost per unit is $60 and again that Q is what we're trying to solve for. Our fixed cost here are $100,000. >> And our target profit is $300,000. Okay, let's rearrange some things and do some grouping. We'll take these together, 100 price minus $60 variable cost. There's a $40 contribution margin times the number of units, which is what we're trying to solve for. And we need to sell enough to be able to cover our fixed cost of 100,000 plus generate a profit of 300,000. So, our total contribution that we're looking for here, is $400000. So how many of these units, that give us a contribution margin of $40 each, do we need to sell to generate total contribution of $400,000? Well the answer is 10,000 units. If we sell 10,000 units, this price, this variable cost, this fixed cost, we will achieve that target profit of $300,000, awesome.