What is the break-even sales in units? If Barnwell brothers is subject to an effective income tax
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Question:
If Barnwell brothers is subject to an effective income tax rate of 40%, how many units would Barnwell brothers have to sale to earn an after-tax profit of $90,000?
If fixed costs increase $31,500 with no other cost or revenue factors changing, what is the break-even sales in units?
How would these calculations affect decision making for managers at Barnwell Brothers? Why?
What recommendations would you suggest for reducing costs at Barnwell Brothers?
Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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