Determine the number of units that must be sold

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Question - The Evans Company uses an ABC system and has provided the following information:

Unit variable cost Rs.15

Fixed costs Rs.300,000

Unit selling price Rs.30

Required -

a. Determine the break-even point in units.

b. Determine the number of units that must be sold to earn Rs.90,000 in profit before taxes.

c. Determine the number of units that must be sold to generate an after-tax profit of Rs.36,000 if there is a 40 percent tax rate.

Reference no: EM132864298

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