Problem 4 - Break-Even and Cost-Volume-Profit Analysis
The PC Supply Company manufactures memory cards that sell to wholesalers for $2.00 each. PC Supply produced and sold 10,000 cards during October 2018.
		Variable Costs per card:			Fixed Costs per Month:
		Direct materials	$0.30		Factory overhead	$4,000
		Direct labor	0.25		Selling and administration	3,000
		Factory overhead	0.25		Total	$7,000
		Selling and Admin	0.15
		Total	$0.95
Part 1: Calculate break-even units rounding to a whole number. Show your calculations, and describe in one sentence what this means for the company.
Part 2: What happens if fixed costs increase from $7000 to $10,000. Calcuate break-even units rounding to a whole number. Show your calculations, and describe in one sentence what this means for the company.
Part 3: Using the original fixed costs of $7000, what happens if the company wants to plan on a monthly profit of $10,000? Calculate sales units and round to the whole number. Show your calculations, and describe in one sentence what this means for the company.
Part 4: If PC Supply is subject to a 40% income tax rate, determine the dollar sales volume required to earn a monthly after-tax profit of $15,000. Show your calculations.