Details of BJM Pty Ltd’s income statement for the past year are:

Sales (22000 units) Cost of sales: Direct materials Direct labour Variable factory overhead Fixed factory overhead	$	440000 396000 88000   60000		$	1320000    984000
GROSS PROFIT Variable selling expenses Fixed selling and administrative expenses		132000   30000			336000    162000
profit before tax Income tax expense (30%)					174000      52200
profit				$	121800

Required

Consider each of the following independent situations.

A. Determine the company’s break-even point in units and sales dollars. What is the margin of safety?

B. If the company wants to make an after-tax profit of $109200, what is the dollar level of sales necessary to reach its goal?

C. If the sales volume is 15000 units, what is the selling price needed to achieve an after-tax profit of $109200

D. If the company’s sales volume increases by 10% as a result of increasing fixed selling expenses by $30000 and variable selling expenses by $0.60 per unit, what is the company’s after-tax profit?

E. If direct material costs increase 10%, direct labour costs increase 15%, variable overhead costs increase 10%, and fixed overhead increases by $10000, how many units must be sold to earn an after-tax profit of $89600? Round your calculations to the next highest unit.