The Sterling Tire Company’s income statement for 20X1 is as follows: STERLING TIRE COMPANY Income Statement for the Year Ended December 31, 20X1Sales (35,000 tires at $90 each) $ 3,150,000Variable costs (35,000 tires at $45)1,575,000Fixed costs550,000Earnings before interest and taxes (EBIT)$ 1,025,000Interest expense57,500Earnings before taxes (EBT)$ 967,500Income tax expense (30%)290,250Earnings after taxes (EAT)$ 677,250.
D. Compute the break-even point in units.