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You have collected the following information Fixed cost $200,000 Variable cost per unit $30 Price per Unit $60 Tax Rate 30% Interest Expense $12,000 Were

You have collected the following information

Fixed cost $200,000

Variable cost per unit $30

Price per Unit $60

Tax Rate 30%

Interest Expense $12,000

Were the firm to desire a $90,000 net income:

a) What level of EBIT would have to be earned?

b) What level of Sales would have to be earned?

Use the following income statement format:

Sales

-TVC

-FC

_____

EBIT

-Interest

________

EBT

-Taxes

_________

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