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Cost-Volume Profit Analysis Hailstorm Company sells a single product for $28 per unit. Variable
costs are $22 per unit and fixed costs are $60,000 at an operating level of 7,000 to 15,000 units.
a. What is Hailstorm Company's break-even point in units?
b. How many units must be sold to earn $12,000 before income tax?
c. How many units must be sold to earn $14,500 after income tax, assuming a 35% tax rate?
a. Break-even point (units)
		Total	Per Unit
	Revenue
	Variable Cost
	Contribution Margin
	Fixed Costs
	Operating Income			* At break-even point, operating income is equal to $0. This would
	Break-even point (units)		units
b. Target units given a target pre-tax income
	Total fixed costs
	Desired income before tax
	Contribution margin per unit
	Target units		units
c. Target units given an after-tax target income
	Total fixed costs
	Target after-tax income
	Tax rate
	Target pre-tax income
	Contribution margin per unit
	Target units		units	* units should be rounded up to the next whole unit

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