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July 30, 2015

Homework Help: Math

Posted by Jessie on Tuesday, March 6, 2012 at 9:02pm.

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?

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