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please give a step by step explanation Break-Even and Net Income Planning Hank...

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Accounting

please give a step by step explanation
Break-Even and Net Income Planning
Hank Company has recently leased facilities for the manufacture of a new product. Based on studies made by its accounting
personnel, the following data are available:
Estimated annual sales: 30,000 units
Selling expenses are expected to be 10% of sales, and the selling price is $43.00 per unit. Ignore income taxes in this problem.
a. Compute a break-even point in dollars and in units. Assume that manufacturing overhead
and administrative expenses are fixed, but that other costs are variable. Use the contribution
margin ratio percent, rounded to one decimal place, in your calculation of break-even in sales
dollars. Round final answers to whole numbers.
b. What would net income before income tax be if 45,000 units were sold?
$
c. How many units must be sold to earn a net income before income tax of 5% of sales?
TIP: Determine the minimum number of units assuming Hank does not sell partial units.
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