Hamlet House makes portable garden sheds that sell for $$1,800$ each. Costs are as follows:

Per Unit Total

Direct material $$800$

Direct labor $90$

Variable production overhead $60$

Variable selling and administrative cost $50$

Fixed production overhead $$400,000$

Fixed selling and administrative $120,000$

a$.$ How many garden sheds must the company sell to break even? Answer

$650$

garden sheds

b$.$ If Hamlet House$$s management wants to earn a pre$-$tax profit of $$400,000,$ how many garden sheds must be sold? Answer

$1,300$

garden sheds

c$.$ If Hamlet House$$s management wants to earn a pre$-$tax profit of $$560,000,$ how many garden sheds must be sold? Answer

$1,800$

garden sheds