Answer:
1. 18,750
2. $187,500
3. 28,750
4. $275,000
5. 27,679 or $276,790
Step-by-step explanation:
As for the provided information, we have,
Sale price per unit = $10
Variable cost per unit = $6
Contribution per unit = $4
Thus, contribution margin = $4/$10 = 40%
Fixed cost = $75,000
Therefore,
1. Break Event Point in Units =

=

2. Break Even in Sales =

3. Before tax profit = $40,000
Net to be recovered from contribution = $40,000 + $75,000 = $115,000
Thus, units required =

4. Sales in dollars for profit before tax of $35,000
Thus, net to be recovered as a contribution margin = $35,000 + $75,000 = $110,000
Sales in Dollars =

5. After tax profit = $25,000
Tax rate = 30%
Profit before tax =

Total to be recovered from contribution = $35,714.29 + $75,000 = $110,714.29
Sales in units = $110,714.29/4 = 27,679
Sales in dollars = 27,679
10 = $276,790