Bobs Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:

Mens Boy's

Selling Price $28.80 $24.00

Variable Cost $20.40 $16.80

Fixed costs are $38,400.

Required:

1. What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:3 in favor of Boy's shirts?
2. What is the operating income, assuming the sales mix is 2:3 in favor of Boy's shirts, and sales total 12,000 shirts?
3. Compute the company's degree of operating leverage and margin of safety as a percentage?
4. How many units for each type of shirt would be sold if the company desired an after- tax net income of $24,000, facing a tax rate of 25%?