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Question
Stan's Cans, Inc. expects to earn $150,000 next year after taxes on sales of $2,200,000. Stan's manufactures only one size of garbage can. Stan sells his cans for $8 apiece and they have a variable cost of $2.40 apiece. Stan's tax rate is currently 34%.a. What are the firm's expected fixed costs for next year?
b. What is the break-even point in units?
Answer
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