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Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and...

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Accounting

Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics.
Sales price $ 44.00 per gallon
Variable costs 20.00 per gallon
Fixed costs 513,600 per month
Preston Products is subject to an income tax rate of 20 percent.
Required::::
a. How many gallons must Preston Products sell every month to break even?
Break-even sales in gallons: _____________
b. How many gallons must Preston Products sell to earn a monthly operating profit of $78,000 after taxes?
number of gallons to be sold: ________________

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