4.13 The Manhasset Machine Tool Corporation manufactures a variety of machi following are taken from the budget for 19A: Sales (10,000 units) $200,000 Variable costs 120,000 Fixed costs 90,000 (a) What is the break-even point in units in 19A? (b) ) What sales vol ume would be necessary to earn an after-tax net income of income tax rate is 40 percent? (c) What sales volume would be necessary to earn a profit before tax equal to sales? ( d ) What effect would a 10 percent price increase have on the break-even poi ( e) What are the principal assumptions underlying the break-even and cost- calculations made in the above?
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