What is the break-even point in units

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Stan's Cans, Inc. expects to earn $150,000 next year after taxes on sales of $2,200,000. Stan's manufactures only one size of garbage can and is located in the small, but beautiful, town of Mount Dora, Florida. Stan sells his cans for $8 a piece and they have a variable cost of $2.40 a piece. Stan's tax rate is currently 34%.

a. What are the firm's expected fixed costs for next year?
b. What is the break-even point in units?

 

Reference no: EM13282866

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