# Computing Break-even Point and After-tax Target Profit

Jo Manufacturing Company provides the following data from 2011: 20,000 units were sold for $60 each; total variable expenses were 900,000 and total fixed expenses were $240,000. Jo's income tax rate is 30%.

What was Jo's break-even point in units?

How many units would have to be sold to earn an after tax profit of $90,000?

What net income would you expect in 2012 if sales increase 20%?

https://brainmass.com/business/accounting/computing-breakeven-point-after-tax-target-profit-453698

#### Solution Preview

Jo Manufacturing Company provides the following data from 2011: 20,000 units were sold for $60 each; total variable expenses were 900,000 and total fixed expenses were $240,000. Jo's income tax rate is 30%.

What was Jo's break-even point in units?

Break-even point in units = Fixed ...

#### Solution Summary

This solution illustrates how to compute the break-even point and after-tax target profit of a project.