10 - 11Q=650000 Q=59.090.91 How many units must be sold to...

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Selling Price $30 per unit Variable Manufacturing Costs $12 per unit Fixed Manufacturing Costs $500,000 Before-tax Target Profit $200,000 Tax Rate 25% What is the breakeven point? SP(Q) – VC(Q) – FC = 0 (or breakeven) 30Q-19Q-650000=0
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Unformatted text preview: 11Q=650000 Q=59.090.91 How many units must be sold to achieve the target before tax profit? SP(Q) - VC(Q) FC=target profit 30Q-19Q-650000=200000 11Q=850000 Q=77273 How many units must be sold to achieve the target profit after taxes? 200000/1 - .25 = $266666.67 30Q-19Q-650000=266666.67...
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