Accounting break-even Unit price Unit variable cost Fixed costs Depreciation 19,700 $120 $84 $620,000 ? 1)Consider taxes.
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Question:
Accounting break-even Unit price Unit variable cost Fixed costs Depreciation
19,700 $120 $84 $620,000 ?
1)Consider taxes. What is depreciation? The tax rate is 35 percent.
Unit price Unit variable cost Fixed costs Depreciation
$2,980 $2,135 $9,000,000 $3,100,000
2)Consider taxes. What is the cash break-even point? The tax rate is 38 percent.
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