IS-HB. (Fixed costs and the break-even point) Keller's Keg expects to earn $38,000 next year after taxes. Sales will be $420,002. The store is located near the fraternity-row district of Blue Springs State University and sells only kegs of beer for $17 a keg. The variable cost per keg is $9. The store experiences a 35 percent tax rate.

a.ı What are Keller's Keg's fixed costs expected to be next year?

b. Calculate the firm's break-even point both in units and in dollars.