Chapter 16, Problem 16E

1.

To determine

Compute the net income for the previous year.

2.

To determine

Compute the break-even in sales revenue.

3.

To determine

Compute the number of units to be sold to generate the before-tax operating income of $900,000.

4.

To determine

Compute the number of units to be sold to generate the after-tax income of $650,000.

5.

To determine

Compute the number of units to be sold to generate the after-tax income of $650,000, if the tax rate increases.