Mels Male Accessories sells wallets Each wallet has an $8 contribution margin; Mels incurs fixed cost in the amount of $180,000. The selling prices of wallets is $30. The corporate-wide tax rate is 40 percent. a. How much revenue is needed to break even?

a. How many wallets does this represent?

b. How much revenue is needed to earn a pre-tax profit of $150,000?

c. How much revenue is needed to earn an after-tax profit t of $120,000?

d. How much revenue is needed to yield a before-tax profit of 12 percent of revenue?

d. How much revenue is needed to yield an after-tax profit of 8 percent of revenue?

e. if actual sales are 30,000 units what is the margin of safety?

Calculate degree of operating leverage using profit given in requirement b.