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3. Quinn Company sells a single product at a price of $100 per unit. Variable costs per unit are 560 and total fixed costs are
3. Quinn Company sells a single product at a price of $100 per unit. Variable costs per unit are 560 and total fixed costs are $600,000. Quinn is considering the purchase of a new piece of equipment that would increase the fixed costs to $800,000 but decrease the variable costs per unit to $50. The income tax rate is 40 percent. Reguired: e, If Quinn Company expects to sell 21,000 units next year, should they purchase this new equipment? f. What would be Quinn's after-tax income assuming they purchased the new piece of equipment and sold 21,000 units? g What is Quinn's breakeven point in units assuming the old equipment is kept? h. What is Quinn's breakeven point in units assuming the new equipment is purchased
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