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Question - Econ Pty Ltd produced and sold 45 000 units of a single product last year. Data concerning the year's profit and loss statement is as follows:
Sales revenue $1350000
Manufacturing cost
Variable $585000
Fixed $270000
Selling costs
Variable $40500
Fixed $54000
Administrative cost
Fixed $108000
Assuming all cost relationships will remain constant for the coming year, how many units must be sold for the company to earn an after-tax profit of $180 000 if the income tax rate is 40 per cent?
a. 47 500
b. 70 000
c. 45 000
d. 61 000
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