Rocky Company has signed a contract that requires them to produce and sell Gadgets for$10 per unit. A recent

Rocky Company has signed a contract that requires them to produce and sell Gadgets for$10 per unit. A recent study of costs indicatedthat their fixed production and fixed sellingandadministrative costswere $100,000 and $40,000 respectively. Variable production costs werediscovered to be $4 per unit while their variable selling and administrative costs are $2 per unit.Rocky'stax rate is 30 percent

Required:

a)   What is the net income for Rocky Company if sales are 60,000 units?

b)   What are the sales quantity in units needed to obtain an after-taxprofit of $21,000?