Red$-$Star Inc. product line consists of four $(4)$ distinct products: bags, books, pens and pencils. The

product mix for Red$-$Star Inc. for fiscal year $2019/20$ is as follows:

$$ Bags $7,000$ units

$$ Books $4,000$ units

$$ Pens $5,000$ units

$$ Pencils $4,000$ units

The annual fixed cost for Red$-$Star Inc. is $$237,500,$ while the selling price and variable cost per unit

are as follows:

Description Bags Books Pens Pencils

Sales $$70$ $$90$ $$65$ $$100$

Variable cost $$60$ $$75$ $$55$ $$50$

REQUIRED:

A Calculate the break$-$even units for Red$-$Star Inc.

B Calculate the break$-$even units for each product.

C Calculate the sales units to make a profit of $$190,000$ before tax.

D Calculate the sales unit for each product for Red$-$Star to achieve the $$190,000$ target

profit.

E Calculate the sales unit to make an after tax profit of $$266,000.$ The tax rate is $30\%$

F How many units of each product should be sold to achieve the after