Maricopa Corporation has developed the budget for its next year of operations. The budget included the following:

Required

a. What is Maricopa’s break-even point, in units and in dollars, for next year?

b. Demonstrate that the unit amount reconciles with the dollar amount.

c. What amount of sales revenue would Maricopa need to realize next year in order to generate a net income of $63,000 after tax?

d. Demonstrate the correctness of the calculations in requirement (c) by constructing an income statement.

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Sales of 100,000 units at $5 Units sold will equal units produced Variable costs for 100,000 units: Direct materials... $125,000 Direct labor.. 100,000 Variable overhead. 30,000 Selling and administrative expense 45,000 Total fixed cost 120,000 Income tax rate of 30%