Hughes Inc. sells two different types of mobile phones. The following data is available for these two products.

The company has total annual fixed costs of $1,115,000 per year. The tax rate for the company is 30%

Requirements:

A. Calculate the number of total phones that Hughes Inc. needs to sell in order to break-even.

B. Calculate the number of each phone that Hughes Inc. needs to sell in order to break-even.

C. Calculate the number of each phone that Hughes Inc. needs to sell in order to earn a pre-tax net operating income of $200,000

D. Calculate the number of total phones that Hughes Inc. needs to sell in order to earn a after-tax net operating income of $175,000

Sales price Variable costs % of sales Mobile Touch $250.00 $175.00 45% Mobile Flip $105.00 $65.00 55%