Reebok Co. manufactures running shoes. The selling price is $80 per pair(unit) and variable costs are $60 per pair(unit). The sales volume of $776,000 generates $100,750 of net income before taxes.
1. Compute total fixed costs
2. Compute total variable costs
3. Compute the break-even points in units
4. Compute the quantity of units above the break-even point to reach targeted net income before taxes