the following information relates to the Smith Corp in 2016

sales:60,000 units

Variable cost:$2.00/unit

fixed cost: $50,000 per yr

Sale price: $7/unit

a) how many units would Smith Corp. have to sell to earn a profit before taxes of $10,000?

b)how many units would Smith Corp. have to sell to earn a profit after taxes of 30,000 with and income tax rate of 60%?

c) if smith corp. spends in addition, $40,000 on advertising in the same year, sales volume should increase my 10,000 units. what effect will this have on net income?