8.1 EXERCISE Series A - ABCD, Inc. ABCD, Inc. makes a pair of custom headphones. The sales price is $20.00 a pair. The variable cost of production is direct materials $4.00 a pair, direct labor of $3.00 per pair, and variable overhead of $5.00 per pair of headphones. ABCD, Inc. also has fixed costs of $125,000 a month. Calculate the monthly break even number of headphones. How many headphones does ABCD have to sell in a year to break even? Save Submit 8.2 EXERCISE Financial Analysis Assume that ABCD, Inc. wants to generate a pretax operating profit of $10,000 per month. How many headphones to they need to sell? Save Submit 8.3 EXERCISE Assume that ABCD, Inc. wants to generate a after-tax operating profit of $10,000 per month. The income tax rate is 32%. How many headphones to they need to sell? Save Submit 8.4 EXERCISE ABCD, Inc. sells headphones and microphones. ABCD, Inc. sells 5 headphones for every 2 microphones. Headphones-The sales price is $20.00 a pair. The variable cost of production is direct materials $4.00 a pair, direct labor of $3.00 per pair, and variable overhead of $5.00 per pair of headphones. Microphones-The sales price is $30.00 each. The variable cost of production is direct materials $5.00, direct labor of $6.50 each, and variable overhead of $7.00 each. The division that sells microphones and headphones has fixed costs of $300,000 a month. How many head phones and microphones does ABCD, Inc. have to sell to break even? Save Submit