Stan's Cans, Inc expects to earn $150,000 next year after taxes on sales of $2,200,000. Stan's manufactures only
one size of garbage can. Stan sells his cans for $8 apiece and they have a variable cost of $2.40 apiece.
Stan's tax
rate is currently 34%.
a. What are the firm's expected fixed costs for next year?
b. What is the break-even point in units?
a. ([P × Q] - [(V × Q) + F]) (1 - T) = $150,000
(2,200,000 - 660,000 - F)(.
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