FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I am having trouble with break even analysis and target profit, taxes. There was not a clear example from the textbook of break even while incorporating tax rates. I want to make sure I am doing this correctly.
here is an example:
A company sells a product for $5 and the variable costs per unit are $4. The fixed costs are $400,000 per year. The tax rate at the company is 30 percent. What is the break even unit sales for the company?
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