Part A: Cost-volume-profit analysis

ABC Enterprises has been operating under very competitive conditions. Its management accounting report forecasts revenue and costs for the July 1 2020 - December 31 2020 period:

Particulars	Amount $	Amount $
Sales		300 000
Less Variable costs	180 000
Fixed costs	160 000	340 000
Profit/(loss)		(40 000)

Required: Answer the following questions:

1. Calculate the sales required to break even.

2. Calculate the sales needed to achieve a profit of $40000.

3. Given a tax rate of 30%, calculate the sales needed to achieve a profit of $35000 after tax

4. Define the break even and explain why managers need to know this information?