Biology Forums - Study Force

Use the information provided below to answer the following questions:

Sales ($50 per unit)	$10,000
Cost of goods sold (all variable costs)	6,000
Fixed costs	2,800

Required:

a.	How many units would the company need to sell to earn $4,000 in operating income?

b.	How many units would the company need to sell to earn $4,000 in net income

if the tax rate is 20%?

c.	By how much would operating income change from part (b) with a 10% increase

in units sold?

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