Hailstorm Company sells a single product for ($22) per unit. Variable costs are ($14) per unit and

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Hailstorm Company sells a single product for \($22\) per unit. Variable costs are \($14\) per unit and fixed costs are \($60,000\) at an operating level of 7,000 to 12,000 units.

a. What is Hailstorm Company’s break-even point in units?

b. How many units must be sold to earn \($12,000\) before income tax?

c. How many units must be sold to earn \($13,000\) after income tax, assuming a 35% tax rate?

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Managerial Accounting For Undergraduates

ISBN: 9781618531124

1st Edition

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

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