Fox Harbour Limited produces and sells a single product; its selling price is $260 and its variable cost is $195 per unit. The companys monthly fixed expense is $314,750.

Required:

1. Solve for the unit sales that are required to earn a target profit before taxes of $20,000.

2. Solve for the dollar sales that are required to earn a target profit before taxes of $60,000.

3. Calculate the number of units that need to be sold to earn an after-tax income of $151,500, assuming a tax rate of 25%.