Gay and Joy are concerned that the estimated fixed costs are too low. They believe that they'll
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Question:
Gay and Joy are concerned that the estimated fixed costs are too low. They believe that they'll need additional equipment, increasing their fixed costs by $ 31,500. Also, there has been a change in the corporate tax rate. (New corporate 2018 U.S. Tax Rate 21.99%).
Required:
Adjust your analysis to assume an increase of $31,500 in fixed costs and the new corporate income tax rate.
Prepare a schedule summarizing the effects of the change.
Discuss the impacts on break even units of adding additional fixed costs.
What would the impact on break even units be if the company increased advertising by $40,000?
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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