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estion 9 O out of 2 points Note that the incremental red cost is $20.000 Suppose you have found the unlevered net income (see
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Answer #1

Tax @ 35% = 65000*35%/(100%-35%) = 35000

EBIT = Unleverd net income+Tax = 65000+35000 = 100000

Gross profit required = EBIT+fixed cost + depreciation

= 100000+20000+40000

=160000

Economic breakeven = Gross profit required/ (SP-Variablecost)

= 160000/(30-20)

= 16000 units

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