Question: Lomas Electronics manufactures a portable testing device for use in oil exploration. The products price and cost characteristics are: Selling price per unit . .

Lomas Electronics manufactures a portable testing device for use in oil exploration. The product’s price and cost characteristics are:
Selling price per unit . . . . . . . . . . . $ 130
Variable cost per unit . . . . . . . . . . . 70
Fixed cost per year . . . . . . . . . . . . 420,000
Required
The company must sell 10,000 units annually in order to earn $117,000 in profits after taxes. What is Lomas Electronics’s tax rate?

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