cost accounting

1. Data related to the expected sales of a Products for ABC Inc. for the current year is follows:

Products Unit Selling Price   Unit Variable Cos

Automobile   ETB 200,000  ETB 160,000  

The estimated fixed costs for the current year are ETB 20,000,000.

Instructions:

a) Determine the estimated units of sales of the product necessary to reach the break-even point for the current year.

b) Assume the company targets income before tax ETB 4,000,000. Calculate total units to be sold to achieve target profit.