4-35 Breakeven Point and Sales Needed for a Desired Profit The Carey Company sold 100.000 units of its product at $20 per unit. Variable costs are $14 per unit (manufacturing costs of $11 and selling costs of $3). Fixed costs are incurred uniformly throughout the year and amount to $792,000 (manufacturing costs of $500,.000 and selling costs of $292.000). There are no beginning or ending inventories. Required: Determine the following: (1) The breakeven point for this product (2) The number of units that must be sold to earn an income of $60.000 for the year (before income taxes). 93 Cost AccOUNTING FOR MANAGERIAL PLANNING, DECISION MAKING, AND CONTROL (3) The number of units that must be sold to earn an after-tax income of $90,000, assuming a tax rate of 40 percent. (4) The breakeven point for this product after a 10 percent increase in wages and salaries (assuming labor costs are 50 percent of variable costs and 20 percent of fixed costs)