Details of Troy Horse Ltd’s income statement for the past year are as follows.

Required
Consider each of the following independent situations.
(a) Determine the company’s break-even point in units and sales dollars. What is the margin of safety?
(b) If the company wants to make an after-tax profit of \($109\) 200, what is the dollar level of sales necessary to reach its goal?
(c) If the sales volume is 15 000 units, what is the selling price needed to achieve an after-tax profit of \($109\) 200
(d) If the company’s sales volume increases by 10% as a result of increasing fixed selling expenses by \($30\) 000 and variable selling expenses by \($0.60\) per unit, what is the company’s after-tax profit?
(e) If direct material costs increase 10%, direct labour costs increase 15%, variable overhead costs increase 10%, and fixed overhead increases by \($10\) 000, how many units must be sold to earn an after-tax profit of \($89\) 600? Round your calculations to the next highest unit.

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Sales (22000 units) Cost of sales: Direct materials Direct labour Variable factory overhead Fixed factory overhead GROSS PROFIT Variable selling expenses Fixed selling and administrative expenses PROFIT BEFORE TAX Income tax expense (30%) PROFIT $440 000 396 000 88000 60 000 132 000 30000 $1320000 984 000 336000 162 000 174000 52 200 $ 121800