Long pre Company distributes insect repellent. Each can of repellent sells for $4.00. The variable cost per can of repellent is $0.75. The fixed selling and distribution costs are $80,000. The after-tax target profit level is $15,000. Longpre Company is subject to an income tax rate of 20 percent.
A. What is the breakeven point in units?
B. What is the breakeven point in dollars?
C. To achieve the profit goal, what must the before-tax profit be?
D. How many units must be sold to achieve the profit goal after taxes?