Question
In 2019, X Company's profit function was 0.32R - $91,400, where R is revenue. In 2020, the relationship between revenue and variable costs will not
In 2019, X Company's profit function was 0.32R - $91,400, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $21,936. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $45,600 after taxes in 2020?
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Corporate Finance, European Edition
Authors: Peter Moles, Robert Parrino, David S. Kidwell
1st Edition
0470683708, 9780470683705
