just wanted to make sure with my work
Ibrahim Corporation manufactures product A.Following is information for next year’s operations, based on an estimated volume of 40,000 units:
Expected revenues$2,000,000
Unit costs:
Direct materials$7
Direct labor16
Variable overhead6
Fixed manufacturing overhead3
Total$32
Other fixed costs:
Administration, marketing, etc.$230,000
Income tax rate30%
a.What is the breakeven point for next year?
b.What is next year’s projected after-tax income?
c.Chose a target after-tax income.Estimate the number of units that must be sold to reach this target.
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