The company has signed a contract that requires them to produce and sell 50,000 units for $5 per unit. A regression model ran using 22 observations to measure total costs as a function of units.

Total costs = $120,000 + $2 per unit

The standard error of the estimate is $10,000.

Calculate the following using certainty.

What is the break-even in units and dollars?

What is the Sales quantity needed for an after-tax profit of $21,000? Assume that a 30 percent tax rate is used.

What is Sales in dollars needed to obtain a pretax profit equal to 10 percent of sales?