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For example, Emma may be interested in knowing the quantity of units of GMAT Success she must sell to earn a net income of $960, assuming an income tax rate of 40%.
3-8 How does an increase in the income tax rate affect the breakeven point?
The income tax rate is 30%.
The company has an income tax rate of 25%.
7.50 Total variable cost per bowl $ 18.50 Fixed costs Manufacturing $ 20,000 Marketing, distribution, and customer service 194,500 Total fixed costs $214,500 Selling price $ 35.00 Expected sales, 22,000 units $770,000 Income tax rate 40%
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