And here's a fourth example. Company D sells a product whose variable costs per unit are $50. Total fixed costs for the year are $200,000. The company anticipates selling 5,000 units. What price must Company D charge to make a profit of $150,000? Take a few minutes, give it a try. And then come back, and we'll see how you did. I'll meet you at the light board. [SOUND] [SOUND] >> [LAUGH] >> Back again, and you're back again, how was that turn? Okay, let's take a look and see how you did. I've got our facts over here on the light board and our handy profit formula here again. We're going to substitute each of these values into its appropriate place in the formula. We'll solve to figure out what price we need to charge to get our target profit of $150,000. Okay, so our price we don't know, that's what we're trying to figure out. Our quantity, let's see. We're expecting units of 5,000, so 5,000 units. And then we have our variable cost per unit we need to find. Okay, that's $50 per unit, times our quantity of 5,000 units. We're going to subtract our fixed cost of $200,000. And we're shooting for that target profit of $150,000. Let's rearrange and send some things to the other side of the equation. I'm going to bring this down. Price times 5,000 units is going to be equal to, all right, we have our target profit of $150,000. We have our fixed cost that's going over in that direction of $200,000. And for 5,000 units we've got $50 per unit and variable cost, so that is $250,000. So we're looking for a price to set on all 5,000 of these units that will give us, let's see, that's 350, 450, 550, 6, $600,000, so if we take $600,000, and we're going to have 5,000 units to generate that $600,000. Then the price that we need to set is $120 per unit. If we set our price at $120 per unit, we will achieve that target profit of $150,000. How did you do? Terrific.