Toys 4 Us sells miniature drones for hobbyists for a price of $1,200. The variable cost for

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Toys 4 Us sells miniature drones for hobbyists for a price of $1,200. The variable cost for each drone is $750. The fixed costs associated with the drone amount to $900,000 per year.
Required
a. Compute the break-even point in units for the drone.
b. Assuming that the tax rate is 40 percent and the desired profit level is $135,000 after tax, compute the required unit sales level.
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Related Book For  book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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