QUESTION 24

1. Washington Company expects to produce and sell 45,000 units of a single product at $30 per unit.

   The expected revenue and costs are as follows

   Sales revenue................................................ $1,350,000

   Manufacturing costs:

   Variable costs per unit............................ $13.00

   Total fixed costs.................................... $270,000

   Selling and Administrative costs:

   Variable costs per unit............................. $5.00

   Total fixed costs.................................... $162,000

   How many units must be sold for the company to earn an aftertax profit of $180,000 if the income tax rate is 40%?