Bill's Cabinets sells a product for $360 per unit. The company's variable cost per unit is $60 for direct material, $50 per unit for direct labor, and $34 per unit for overhead. Annual fixed production overhead is $74,800, and fixed selling and administrative overhead is $50,480.
Assume a tax rate for the company of 30 percent.
a. If Bill's Cabinets wants to earn an after-tax profit of $135,800, how many units must the company sell? Round your answer to the nearest whole unit.
b. If Bill's Cabinets wants to earn an after-tax profit of $5.60 on each unit sold, how many units must the company sell? Round interim calculations to two decimal places. Round your final answer up to the next whole number.