Gere Club Makers International manufactures golf clubs for amateur golfers and sells them in complete sets. Each set of clubs sells for $250. The costs for the company for a typical year are attached. The company expects to sell 120,000 sets of clubs per year. The company has an average income tax rate of 25%. REQUIRED: (1) How many sets of golf clubs must the company sell in order to break even? Round your answer up to the next whole unit. (2) How much sales in dollars must the company have in order to earn a before tax profit of $150,000? Round your answer to nearest whole dollar. (3) Suppose that the company desires to earn an after tax profit of $225,000. How many sets of golf clubs must the company sell in order to achieve this goal? Round your answer up to the next whole unit. (4) Suppose that the company can eliminate the fixed manufacturing overhead costs completely by increasing the variable manufacturing overhead cost to $25 per unit. How many sets of golf clubs must the company now sell in order to break even? Round your answer up to the next whole unit. (5) Using the original cost information in the problem, assume that the company intends to sell 150,000 sets of golf clubs for the current year. What price per unit would it have to charge in order to earn a before tax profit of $300,000? Round your answer to the nearest whole cent.

GERE CLUB MAKERS INTERNATIONAL COSTS FOR THE COMPANY FOR A NORMAL YEAR Direct Materials Cost Per Unit $ 100.00 Direct Labor Cost Per Unit 30.00 Variable Manufacturing Overhead Cost Per Unit 20.00 Fixed Manufacturing Overhead Cost Per Year 70,000 Variable Marketing and Admin. Cost Per Unit 10.00 Fixed Marketing and Admin. Cost Per Year 250,000