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The company's break even points in unit sales is 43,000 units.
Above the actual sales volume of 42,000 units is the break-even point.
<h3>What is Break Even point?</h3>
- In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even."
- Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even."
- A graph with a function that represents the fixed costs is also helpful.
- No matter how many units are manufactured, the fixed cost is always 1200, hence the fixed costs function is shown as a horizontal line (FC = 1200).
- Any of the following will raise the break-even point: an increase in the quantity of fixed charges or expenses for the business.
- An increase in variable expenditures and expenses per unit. A drop in the selling prices offered by the company.
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The marginal tax rate on the remaining $50,000. Tim's second income that he earned throughout the year will incur the following tax obligation. The right response is 50%.
21,000 - (20%*30,000) = 21,000 - 6,000 = $15,000 is the tax on a second income.Taxes paid on second income divided by the amount of second income earned during the year is the marginal tax rate on second income.Marginal tax rate: 15%, 30%, and 50% The gross income in this example is $33,333 since it is the amount that every employee earns before taxes and social security contributions are deducted.$30,000 represents the total amount won over the course of the year after 10% is deducted for taxes (in this case, $3,333).Tax on second income equals 21,000-(20%*30,000)-21,000-6,000 =$15,000 Second income tax rate, second income tax paid, and second income earned for the year
Marginal tax rate = 15/30 = 50%.
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