Regina Enterprises, Ltd. has estimated the following costs for producing and selling 8,000 units of its product:

Direct materials...............................................$32,000

Direct labour...................................................40,000

Variable overhead.............................................20,000

Fixed overhead...............................................$30,000

Variable selling and administrative expenses.............24,000

Fixed selling and administrative expenses.................33,000

Regina Enterprises' income tax rate is 30%.

Instructions

Answer the following questions:

(a) Given that the selling price of one unit is $35, how many units would Regina Enterprises have to sell in order to break even?

(b) At a selling price of $37.50 per unit, how many units would Regina Enterprises have to sell in order to produce a profit of $22,000 before taxes?

(c) If 7,500 units were produced and sold, what price would Regina Enterprises have to charge in order to produce a profit of $28,000 after taxes?

(d) If 9,000 units were produced and sold, what price would Regina Enterprises have to charge in order to produce a before-tax profit equal to 30% of sales?