A to Z Pty Ltd has provided the following planned per‐unit cost and sales data for the year ended 30 June 2020.

Fixed factory overhead costs are $1 056 000 per year, and the annual fixed selling and administrative costs are $352 000.
Required

(a) Calculate the break‐even point for 2019 and 2020 in total units and the number of units of each product that must be sold at the break‐even point.

(b) Calculate the number of units of each product that would have had to be sold in 2019 to earn an after‐tax profit of $246 400. Assume a tax rate of 30%.

(c) Calculate the number of units of each product that would have to be sold in 2020 to earn an after‐tax profit of $255 640.

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A Units sold in 2019 24 000 Planned 2020 unit sales 31 500 Selling price $90 Direct labour cost 18 Direct materials cost Variable factory overhead Variable selling expenses B 24 000 36 000 $100 24 C 32 000 22 500 $80 16 28 24 12 10 12 8 4 6 4