Data for the Bidwell Company are as follows:

Required:

a. Based on the preceding data, calculate break-even sales in units.

b. If Bidwell Company is subject to an effective income tax rate of 40 percent, calculate the number of units Bidwell would have to sell to earn an after-tax profit of $90,000.

c. If fixed costs increase $31,500 with no other cost or revenue factors changing, calculate the break-even sales in units.

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Sales (100,000 units) Costs Raw material Direct labor Factory costs Selling and administrative costs Total costs Operating income $ Fixed 0 0 100,000 110,000 $210,000 Variable $300,000 200,000 150,000 50,000 $700,000 $1,000,000 910,000 $ 90,000