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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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