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United Refrigeration Company ( UFC ) produces one model of refrigerator that Sells for $ 1 , 250. Variable costs are FESO per unit .

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United Refrigeration Company ( UFC ) produces one model of refrigerator that Sells for $ 1 , 250. Variable costs are FESO per unit . Fixed Costs are $7 20, OOD per year . Tax rate 15: 409% . E. Compute the breakeven point in Sales revenue for a year . ( 1 mark ) 2000 units = 720, 000 1250- 890 20:00* 1250 = $2, 500, 000 ANSWER: $2, 500, 000 7 . How many units would LIFE have to Sell in a year to earn a profit before taxes of $50, 000? '1 mark) ( Fixed Expenses + ETI ) = Unit contribution margin = ($720, 000 + $90, 000) = 360 - 2, 250 unit s URC Will have to Sell 2, 250 units in a year to earn a profit before taxes of $90, 000. B. How much would the annual sales revenue ( I ) have to be for LIFE to have a profit after TAXES Of $ 1, 080, 000? (2 marks) Before Taxes Profit : 2, 700, 000 Annual Sales REVENUE : $ 1 1, 875, 000

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