Reference no: EM132547262

Esp Company sells its products for $690 per unit. Costs for last year, when 40,000 units were produced, are as follows:

                                              Per unit                          Total

Direct labor                       $ 70.00                  $2,800,000

Direct materials                  $150.00                 $6,000,000

Variable overhead                $ 50.00                  $2,000,000

Fixed overhead                   $100.00                  $4,000,000

Variable SG&A                     $ 30.00                   $1,200,000

Fixed SG&A                         $ 95.00                     $3,800,000

Question 1: How much profit would Esposito earn if 30,000 units were sold?

Question 2: How many units would Esposito need to sell to break even?

Question 3:  How many units would Esposito need to sell to earn a before-tax profit of $8,385,000?