Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2004 for its Elite Quality golf club sets:

Revenues (200 sets sold @ $1600 per set) $320,000

Variable Costs 200,000

Fixed Costs 60,000

a) How many sets of clubs must be sold for Tee Times, Inc. to reach their breakeven point?

b) How many sets of clubs must be sold to earn a target operating income before tax of $90,000?

c) What amount of sales must Tee Times, Inc. have to earn a target net income after taxes of $42,000 if they have a tax rate of 30%?

d) At the current $320,000 Revenue level, what is the Margin of safety?

e) At the current $320,000 Revenue level, what is the Margin of safety ratio?