Carter Manufacturing Company manufactures exclusive pens which sell for $77 per unit. Its unit variable costs are $62 and fixed expenses are $392,500. The company pays income tax at the rate of 40%.

Required: 1. How many units must Carter sell to earn an after-tax income of $25.800? Units 2 Re-compute the sales level to earn the above-mentioned after-tax income of the tax rate changes to 20% Sales level required (units)