How many widgets have to be sold in july to break even

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Aberra Corporation sells widgets for $15 each. For the month of June, Aberra sold 8,000 widgets and reported variable costs of $24,000 and fixed costs of $78,000. Assume that Aberra increased its selling price by 20 percent on July 1.

A. How many widgets have to be sold in July to break even?
B. How many widgets have to be sold to earn a before-tax profit of $44,000?
C. If Aberra is subject to an income tax rate of 30 percent, how many widgets have to be sold to earn an after-tax profit of $44,000?
D. How many widgets have to be sold to earn a before-tax profit of 20 percent of sales? (Hint: Define the desired profit as a percentage of sales rather than a dollar amount.
E. How many widgets have to be sold to earn an after-tax profit of 20 percent of sales?

 

Reference no: EM13492226

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