1. When considering the impact of tax on the sales volume needed to achieve a desired after-tax profit, which of the following statements is true?

   1. Fixed costs will increase.

   2. As the tax rate increases, the number of units that need to be sold will decrease.

   3. The before-tax profit will need to be calculated.

2.

Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

The best estimate of the total variable manufacturing cost per unit is:

1. $83.70

2. $97.00

3. $86.05

4. $79.90