Assignment:

The following information pertains to High Co.:

Sales (50,000 units) $1,000,000

Direct materials and direct labor 300,000

Factory overhead:

Variable 40,000

Fixed 70,000

Selling and general expenses:

Variable 10,000

Fixed 60,000

REQUIRED:

a.How much was High's break-even point in number of units?

b.How much was High's break-even point in dollars?

c.How many units should High sell if they want an after-tax income of $273,000, assuming an income tax rate of 30%?