Ibrahim Corporation manufactures product A. Following is information for next years operations, based on an estimated volume of 40,000 units:

Expected revenues $2,000,000

Unit costs:

Direct materials $ 7

Direct labor 16

Variable overhead 6

Fixed manufacturing overhead 3

Total $32

Other fixed costs:

Administration, marketing, etc. $230,000

Income tax rate 30%

a. What is the breakeven point for next year?

b. What is next years projected after-tax income?

c. Chose a target after-tax income. Estimate the number of units that must be sold to reach this target.