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Enola, Inc., manufactures a product that sells for $800. Fixed costs are $750,000. The variable costs per unit are as follows: Direct materials $300 Direct

Enola, Inc., manufactures a product that sells for $800. Fixed costs are $750,000. The variable costs per unit are as follows:

Direct materials

$300

Direct labor

140

Variable manufacturing overhead

85

Required:

a.

a.Determine the break-even point in units. (Hint: You must compute total variable costs and total fixed costs)

b. Determine the break-even sales dollars

c.Determine the number of units that must be sold to earn $200,000 in profit before taxes.

d.

Determine the number of units that must be sold to generate an after-tax profit of $110,000 if there is a 35 percent tax rate.

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