Ochorios Company produces jars of jerk seasoning. (Jerk is a very spicy combination of scal¬

lions, allspice, nutmeg, thyme, and habanero chilis used as a marinade for chicken and pork.)

Currently, Ochorios charges a price of $3.50 per jar. Variable costs are $2.31 per jar and fixed costs are $23,800. The tax rate is 40%. Last year, 73,800 jars were sold.

Required:

1. What is Ochorios' income after taxes for last year?

2. What is Ochorios' break-even revenue?

3. Suppose Ochorios wants to earn before-tax operating income of $11,900. How many units must be sold?

4. Suppose Ochorios wants to earn after-tax net income of $11,900. How many units must be sold?