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William Brown is a young entrepreneur preparing to start a company that will sell floating lounge chairs for use in private pools. As part of
William Brown is a young entrepreneur preparing to start a company that will sell floating lounge chairs for use in private pools. As part of a loan package, the bank has asked him to prepare a business plan that includes a breakeven analysis. The lounge chairs will sell for $70 each and variable costs per unit are expected to be $45. William anticipates incurring $589,000 in fixed costs per year. d) Assuming the company's tax rate is 30%, how many lounge chairs must the company sell to generate annual net income of $64,400? (Round answer to 0 decimal places, e.g. 5,275. Use contribution margin per unit to calculate the answer.) chairs
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