(CVP; multiproduct) Howe Wholesalers sells baseball products. Its Little League Division handles both bats and gloves. Historically, the firm’s sales have averaged six bats for every two gloves. Each bat has a $4 contribution margin, and each glove has a $5 contribution margin. The fixed cost of op¬ erating the Little League Division is $170,000 per year. The selling prices of bats and gloves, respectively, are $10 and $15. The corporatewide tax rate is 40 percent.

a. How much revenue is needed to break even? How many bats and gloves does this represent?

b. How much revenue is needed to earn a pre-tax profit of $132,222?

c. How much revenue is needed to earn an after-tax profit of $132,222?

d. If Little League Division earns the revenue determined in part

(b) but does so by selling five bats for every two gloves, what would be the pre-tax profit (or loss)? Why is this amount not $132,222?