Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $90 per unit and has a CM ratio of 20%. The companys fixed expenses are $540,000 per year. The company plans to sell 34,000 knapsacks this year.

Required: 1. What are the variable expenses per unit?

Use the equation method for the following:

a.

What is the break-even point in units and in sales dollars?

b.

What sales level in units and in sales dollars is required to earn an annual profit of $117,000?

c.

What sales level in units is required to earn an annual after-tax profit of $117,000 if the tax rate is 20%?

d.

Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $9 per unit. What is the companys new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

Use the formula method for the following: for the above a,b,c,and d