Breakeven Number of Gadgets
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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?
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Solution Summary
The solution determines the break-even number of gadgets B must sell to make a zero, after-tax profit.
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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