Midvale Corporation sells a single product for $100 per unit, of which $40 is contribution margin. Total fixed cost is $120,000, and net income before income tax is $48,000.

Required

Determine the following (show key computations):

a. The present sales volume in dollars.

b. The break-even point in units.

c. The sales volume in units necessary to attain a net income before income tax of $60,000.

d. The sales volume in units necessary to attain a net income before income tax equal to 10% of

sales revenue.

e. The sales volume in units necessary to attain a net income of $54,000 if the tax rate is 40% (Remember to divide after net income by (1-tax rate) to get pretax number to solve the problem with)