Essay
Barren Company sells a single product for $15 per unit. Variable costs are $5 per unit and fixed costs are $75,000.
Required:
a. What is Barren Company's break-even point in units?
b. How many units must Barren sell to earn $25,000 before income tax?
c. How many units must Barren sell to earn $21,000 after income tax, assuming a 20% tax rate?
Correct Answer:
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a. Desired units = Fixed costs / Unit co...View Answer
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