P$6\mathrm{.}56$B $($LO $1,2,3)$ JAX Corporation sells a single product for $$40.$ Its management estimates the following revenues and costs for the year $2022$:

Net sales

Direct materials

Direct labour

Manufacturing overhead$-$variable

Manufacturing overhead$-$fixed

Instructions

a$.$ Assuming fixed costs and net sales are spread evenly throughout the year, calculate JAX's monthly break$-$even point in $(1)$ units and $(2)$ dollars.

b$.$ Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income.

b$.CM$ ratio $=40\%$

c$.$ Assuming JAX Corporation increases its selling price by $30\%$ and all other factors $($including demand$)$ remain constant, determine by what percentage annual operating income will increase.

d$.$ Assume the price remains at $$40$ per unit and variable costs remain the same per unit, but fixed costs increase by $30\%$ annually. Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part $($b$).$

e$.$ Determine the sales required to earn an operating income of $$360,000$ after tax. JAX Corporation's income tax rate is $40\%.$

$20,000$