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You can earn abnormal investment returns via macro forecasting. Firm B produces gadgets. The price of the gadgets is $2 each. Firm B has total

You can earn abnormal investment returns via macro forecasting. Firm B produces gadgets. The price of the gadgets is $2 each. Firm B has total fixed costs of $300,000 and variable costs of $1.40 per gadget. The corporate tax rate is 30% (Federal and State combined). What is the breakeven number of gadgets B must sell to make a zero after-tax profit?

A.

300,000

B.

400,000

C.

500,000

D.

600,000

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