Ng Corporation produces and sells only one product; its selling price is $100 and its variable cost is $60 per unit. The company's monthly fixed expense is $35,000.

Required:

1.Using the equation method, determine the unit sales that are required to earn a target profit before tax of $4,000.

Unit sales ............................units

2.Using the formula method, determine for the dollar sales that are required to earn a target profit before tax of $5,000.

Dollar sales .....................................

3.Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $6,000, assuming a tax rate of 25%.

No.of units .........................units