Hailstorm Company sells a single product for $28 per unit. Variable costs are $22 per unit and fixed costs are $60,000 at an operating level of 7,000 to 15,000 units.
Round UP answers to the nearest unit, when applicable.
a. What is Hailstorm Company’s break-even point in units?
Answer 1
units
b. How many units must be sold to earn $12,000 before income tax?
Answer 2
units
c. How many units must be sold to earn $14,500 after income tax, assuming a 35% tax rate?
Answer 3
units