CVP, target operating and net income. (J. Watson) Carumba Inc.’s 2009 budget includes a the following items:

REQUIRED 1. At what price would the company break even?
2. If the company were to sell only 60,000 units, what price would produce a before-tax profit of 20% of sales?
3. Majestix Inc. has offered to supply Carumba with 80,000 units at a price of $28/unit.
Should Carumba accept the offer? Explain.
4, What price would produce an after-tax profit of $350,000?LO1

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Sales 80,000 units Production Direct materials used 80,000 units $600,000 Direct labour 400,000 Variable overhead 720,000 Fixed overhead 400,000 Variable selling costs 260,000 Fixed selling costs 250,000 Administrative costs (all fixed) 150,000 The company's tax rate is 30%.