1. ) Inland Company hassigned acontractthat requiresthemtoproduceandsell50,000unitsfor$5perunit.Aregressionmodelwasrunusing22 observationsto measuretotal costs as a functionofunits.Itis as follows:

Total costs= $120,000+$2 per unit The standard errorof the estimate is$10,000. Required:

1. Calculatethefollowingassumingcertainty:

1. Breakeveninunitsanddollars

11. Salesquantityneededtoobtainanafter-taxprofitof$21,000.Assumethata30percent tax rate is used for only part ii.

111.SalesindollarsneededtoobtainapretaxprofitequaltoIOpercentofsales.

1. Calculatethefollowingassuminguncertainty:

1. Whatistherangeofincomesthatwouldbeexpectedwith90percentconfidence?

11. What istheprobabilitythatthefirmwillmakeaprofitnextyear?