Firm B produce gadgets. The price of gadgets is $2 each. Firm B has total fixed costs of $300,000 and variable costs of $1.40 per gadget. The corporate tax rate is 40%.
What is the breakeven number of gadgets B must sell to make a zero after tax profit?© BrainMass Inc. brainmass.com June 4, 2020, 12:11 am ad1c9bdddf
The solution determines the break-even number of gadgets B must sell to make a zero, after-tax profit.