Madden Company projected its income before taxes for next year as shown here. Madden is subject to a 40% income tax rate.

Sales (160,000 units) .......$8,000,000

Cost of sales

Variable costs ......... 2,000,000

Fixed costs .......... $3,000,000

Pretax profit ........... $3,000,000

REQUIRED

A. What is Madden’s breakeven point in units sold for the next year?

B. If Madden wants $4.5 million in pretax profit, what is the required level of sales in dollars?

C. If Madden’s net assets are $36 million, what amount of revenue must be achieved for

Madden to earn a 10% after-tax return on assets?