Compute the break-even point in units for the drone

Reference no: EM131811604

Toys 4 Us sells miniature drones for hobbyists for a price of $40. The variable cost for each drone is $9. The fixed costs associated with the drone amount to $105,400 per year.

Required: a. Compute the break-even point in units for the drone.

b. Assuming that the tax rate is 36 percent and the desired profit level is $158,720 after tax, compute the required unit sales level.

Reference no: EM131811604

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