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The Andrea S. Fault Seismometer Company is an all-equity-financed firm. It earns monthly, after taxes, $24,000 on sales of $880,000. The tax rate of the
The Andrea S. Fault Seismometer Company is an all-equity-financed firm. It earns monthly, after taxes, $24,000 on sales of $880,000. The tax rate of the company is 40 percent. The companys only product, The Desktop Seismometer, sells for $200, of which $150 is variable cost.
a) What is the companys monthly fixed operating cost?
b) What is the monthly operating break-even point in units? In dollars?
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