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Unformatted text preview: VCR (variable cost ratio) = VC per unit/SP per unit CMR + VCR = 1 Extensions: Taxes Multi Products Changing parametrics Taxes Make the good times not as good and the bad times not as bad X = TFC + [profit /(1-t) ] CM/unit $ % NI before taxes 20,000 100%-Taxes 8,000 40% =NI after taxes 12,000 60% Ex)Tax = 40%, Desired NI after taxes = $12,000; what must NI before taxes equal? = $20,000 Break-Even Point X = TFC + profit/(1-t) CM/unit in units SP(x) = TFC + profit/(1-t) CMR in dolllars...
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