The Red Company makes two products. Cost data for these two products is as follows:

	Product A	Product B
Selling price	$10	$20
Variable costs	7	12

Total annual fixed costs are $840,000. The firm's experience has been that about 20 percent of unit sales come from product A, 80 percent from B.

The Red Company is taxed at 30%

Required:

a.	Determine the number of units to be sold at the break-even point.
b.	Determine the number of units to be sold if the company also wishes to make $120,000 profit before tax.

c.	Determine the number of units to be sold if the company also wishes to make $120,000 after tax profit.