1 - Wang Co. manufactures and sells a single product that sells for $420 per unit; variable costs are $231 per unit. Annual fixed costs are $909,000. Current sales volume is $4,220,000. Management targets an annual pre-tax income of $1,145,000. Compute the unit sales to earn the target pre-tax net income.

2 - Carver Packing Company reports total contribution margin of $77,100 and pretax net income of $25,700 for the current month. In the next month, the company expects sales volume to increase by 9%. The degree of operating leverage and the expected percent change in income, respectively, are:

3 -

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $143,900.

Sales (45,000 units)				$	990,000
Costs:
Direct materials	$	236,200
Direct labor		241,100
Fixed factory overhead		105,500
Variable factory overhead		151,100
Fixed marketing costs		111,100
Variable marketing costs		51,100			896,100
Pretax income				$	93,900