1-Two firms, A and B, both produce brushes. The price of brushes is $1.80 each. Firm A has total fixed costs of $462,000 and variable costs of 48 cents per brush. Firm B has total fixed costs of $260,000 and variable costs of 72 cents per brush. The corporate tax rate is 35%. If the economy is strong, each firm will sell 1,500,000 brushes. If the economy enters a recession, each firm will sell 986,000 brushes.

If the economy enters a recession, what will be the after-tax profit of Firm A?

2-wo firms, A and B, both produce brushes. The price of brushes is $2.05 each. Firm A has total fixed costs of $451,700 and variable costs of 65 cents per brush. Firm B has total fixed costs of $260,000 and variable costs of 72 cents per brush. The corporate tax rate is 35%. If the economy is strong, each firm will sell 1,517,000 brushes. If the economy enters a recession, each firm will sell 971,500 brushes.