How many garden sheds must the company sell to break even?

(CVP) Seattle Leisure Designs has designed a new athletic suit. The company plans to produce and sell 30,000 units of the new product in the coming year. Annual fixed costs are $600,000, and variable costs are 70 percent of selling price. If the company wants a pre-tax profit of $300,000, at what minimum price must it sell its product?

(CVP) Sheridan Shacks makes portable garden sheds that sell for $1,800 each. Costs are as follows:

	Per Unit	Total
Direct material	$800
Direct labor	90
Variable production overhead	60
Variable selling and administrative cost	50
Fixed production overhead		$200,000
Fixed selling and administrative		60,000

a. How many garden sheds must the company sell to break even?

b. If Sheridan Shacks’ management wants to earn a pre-tax profit of $200,000, how many garden sheds must it sell?

c. If Sheridan Shacks’ management wants to earn a pre-tax profit of $280,000, how many garden sheds must it sell?