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House company produces one product that sells for $1,200. Variable costs are $840 per unit. Fixed costs are $720,000. The tax rate is 40 percent.
House company produces one product that sells for $1,200. Variable costs are $840 per unit. Fixed costs are $720,000. The tax rate is 40 percent.
a) Compute the break-even point in units and in sales revenue.
b) How many units would House Company have to sell to earn a profit before taxes of $900,000?
c) How much would the sales revenue have to be for House Company to have a profit after taxes of $1,080,000?
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