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Assignment:The following information pertains to High Co.:
Sales (50,000 units) $1,000,000
Direct materials and direct labor 300,000
Factory overhead:
Variable 40,000
Fixed 70,000
Selling and general expenses:
Variable 10,000
Fixed 60,000
REQUIRED:
Problem a. How much was High's break-even point in number of units?
Problem b. How much was High's break-even point in dollars?
Problem c. How many units should High sell if they want an after-tax income of $273,000, assuming an income tax rate of 30%?
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