Your firm expects to earn $474,000 after taxes next year. Sales will be $3,500,000 and fixed costs will be $1,300,000. Interest expense will amount to $350,000. Your firm manufactures office machines, and expects to sell 8,750 units next year. Your firm has a 21% tax rate. What are your firm's total variable costs expected to be next year? a) $950,000 d) $1,250,000 b) $600,000 e) $1,600,000 c) $2,500,000

For the previous problem, if you are able to set fixed costs at $1,200,000 per year and change variable costs to $100 per unit, how many units would you have to sell to break even? a) 3,000 units d) 12,000 units b) 4,000 units e) 10,000 units c) 6,000 units