The African Division of Global Dictionary Corporation manufactures an electronic dictionary that includes popular phrases in three African languages. The following table presents annual budget for next year. Projected sales are 100,000 dictionaries.

Required: Students are required to create an Excel spreadsheet to solve requirements (1), (2), (3), and (5).

1.(1 point) Determine the break-even point in units and in sales dollars.

2.(1 point) Assuming the African Division is subject to an income-tax rate of 40 percent, determine the number of units the company would have to sell to earn an after-tax profit of $90,000.

3.(1 point) Determine the firms break-even sales in units, assuming fixed costs increased by $31,500 (all other data remain the same).

4.(1 point) Construct a profit-volume graph (use the annual budget data in the original problem).

5.(1 point) The country where the African Division operates is undergoing political instability. Managers predict the country is likely to divide into two independent nations. In such a case, the tax rate could go up to 50 percent. Determine the number of dictionaries that must be sold to earn $90,000 after taxes (assume all other data as in the original problem).

$1,000,000 $ Sales Costs: Direct material Direct labor Manufacturing overhead Selling and administrative Total costs Budgeted operating income Fixed o o 100,000 110,000 $210,000 Variable $300,000 200,000 150,000 50,000 $700,000 910,000 90,000