A company supplier of electronic items, sells three products known as Ama, Beta and Cuss. It maintains consistently a sixty percent variable cost ratio for each product sold. The selling prices of the three products, Ama, Beta and Cuss, are $160, $120, and $100 respectively. The total fixed cost for the period is $948,000. Management is planning to sell 5,000 of product Ama, 4,000 of product Beta and 3,000 of product Cuss.

Required:

a) Calculate the break-even point (items)

b) Calculate the break-even point (total revenues)

c) Calculate how many items should be sold to achieve a target income of $474,000 before tax

d) Calculate how many items should be sold to achieve a target income of $533,250 after tax, tax rate is 25%