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 coasts 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).

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).

A step-by-step on how to get through each requirement would be super helpful; we also have no access to computer programs like Excel to help us solve so it would be awesome to see it all done traditionally if possible. Thanks!