The Carey company sold 100,000 units of its product at $20 per unit. Variable costs are $14 per unit (manufacturing costs of $11 and selling costs of $3). Fixed costs are incurred uniformly throughout the year and amount to $792,000 (manufacturing costs of $500,000 and selling costs of $292,000). There are no beggining or ending inventories.

Determine the following

1.) The break even point for this product

2.)The number of units that must be sold to earn an income of $60,000 for the year (before income taxes).

3.) The number of units that must be sold to earn an afer tax income of $90,000 assuming a tax rate of 40%.

4.) The breakeven point for this product after a 10 percent increase in wages and salaries (assuming labor costs are 50 percent of variable costs and 20 percent of fixed costs).