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James Company makes two products and expects the following sales and costs during 2020:
Ties
Unit sales 5,000
Selling price per unit $15
Variable costs per unit $4
Hats
Unit sales 1,000
Selling price per unit $25
Variable costs per unit $9
The company's 2020 fixed costs are expected to be $80,017.
Required
Problem 1: How many total units must be sold to break even?
Problem 2: How many ties would this figure include?
Problem 3: How much revenue would be required to yield a before-tax profit of $40,000?
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