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Econ Pty Ltd produced and sold 45 000 units of a single product last year. Data concerning the year's profit and loss statement is as
Econ Pty Ltd produced and sold 45 000 units of a single product last year. Data concerning the year's profit and loss statement is as follows:
Sales revenue $1350000
Manufacturing cost
Variable$585000
Fixed$270000
Selling costs
Variable$40500
Fixed$54000
Administrative cost
Variable$585000
Fixed$108000
Assuming all cost relationships will remain constant for the coming year, how many units must be sold for the company to earn an after-tax profit of $180 000 if the income tax rate is 40 per cent?
Select one:
a.
47 500
b.
70 000
c.
45 000
d.
61 000
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