Carey Company sold 100,000 units of its product at $20 per unit. Variable costs are $14 per unit

(manufacturing costs of $11 and selling costs of $3). Fixed costs are incurred uniformly throughout the year and amount to $792,000 (manufacturing costs of $500,000 and selling costs of $292,000).

There are no beginning or ending inventories.: pg56 Required:

a Compute the break-even point for this product in dollars and units.

b Compute the number of units that must be sold to earn a net income of $60,000 for the year before income taxes.

ce If the income tax rate is 40% compute the number of units that must be sold to earn an aftertax income of $90,000.

d_ If labor costs are 50% of variable costs and 20% of fixed costs, by how much would a 10%

increase in wages and salaries increase the number of units required to break even?