Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ZYX, Inc. has purchased 1,000 widgets for $73 per widget. They would incur $15,000 of fixed costs to sell all 1,000 widgets. Their income tax
ZYX, Inc. has purchased 1,000 widgets for $73 per widget. They would incur $15,000 of fixed costs to sell all 1,000 widgets. Their income tax rate is 25%.
A. If they wanted to make an after-tax profit of $25,000, what price should they charge for each Widget? Round dollar answers to the even dollar and per unit amounts to the even penny.
B. What other factors should they consider and why before they attempted to sell the widgets at the price you calculated in Question A?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started