IS-lSA. (Fixed costs and the break-even point) Dot's Quik-Stop Party Store expects to earn

$4{I,OOOnextyear after taxes. Sales will be $400,000. The store is located near the fraternity-row dilO'ict of Cambridge Springs State University and sells only kegs of beer for $20 a keg. The I'lriable cost per keg is $8. The store experiences a 40 percent tax rate.

a. What are the Party Store's fixed costs expected to be next year?

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