Prime Colors (PC) sells one-gallon cans of house paint for $25 each. The variable cost to produce

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Prime Colors (PC) sells one-gallon cans of house paint for $25 each. The variable cost to produce each can is $17.50, and fixed operating costs are $1,500. PC normally sells 30,000 gallons of paint each year, has an interest expense equal to $300, and its marginal tax rate is 40 percent. Given this information, what is PC’s operating break-even point?

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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