Yard Bird manufactures commercial and residential riding lawnmowers. The company sells one commercial mower per three residential mowers sold. Selling prices for the commercial and residential mowers are, respectively, $5,600 and $1,800, and variable selling and production cost are, respectively, $3,800 and $1,000. The company’s annual fixed cost is $8,400,000. Compute the sales volume of each mower type needed to
a. Break even.
b. Earn $1,260,000 of income before tax.
c. Earn $1,008,000 of income after tax, assuming a 40 percent tax rate.
d. Earn 12 percent on sales revenue in pre-tax income.
e. Earn 8 percent on sales revenue in after-tax income, assuming a 40 percent tax rate.