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Question 1 (4 marks) Pua Kai, the new accounting analyst at MAUI Inc., is budgeting for the upcoming year and has compiled the following
Question 1 (4 marks) Pua Kai, the new accounting analyst at MAUI Inc., is budgeting for the upcoming year and has compiled the following per-unit information: elling price Direct materials Direct labour ariable overhead $52.5 $15.0 $16.7 $ 9.3 Pua estimates that the fixed costs for MAUI Inc. are $785,000. MAUI Inc. is subject to tax ata rate of 32%. Required: a) Calculate MAUI Inc.'s break-even point in units. (2 marks) b) Calculate the number of units that MAUI Inc. must sell in order to earn an after-tax profit of $72,500. (2 marks)
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