Problem $5$: Tatum Company produces products that it sells for $$60$ each. The annual costs expected at $90,000$ units of production and sales are variable manufacturing costs per unit $$10,$ variable selling and administrative costs $$6,$ fixed manufacturing costs of $$40$ per unit and fixed selling and administrative costs of $$6$ per unit.

The tax rate is $25\%.$

Required:

$1.$Determine the break$-$even point in units.

$2.$What is the break$-$even point in dollars?

Determine the number of units that would have to be sold to achieve an after$-$tax income of $$990,000.$

$1.$What would Tatum's traditional income after taxes be if it produces $125,000$ units and sells $90,000$ units?

$2.$Prepare a contribution income statement for Tatum Co if it produces $140,000$ units and sells $100,000.$ DO not address taxes for this question.