I am having trouble with break even analysis and target profit, taxes. There was not a clear example from the textbook of break even while incorporating tax rates. I want to make sure I am doing this correctly. here is an example: A company sells a product for $5 and the variable costs per unit are $4. The fixed costs are $400,000 per year. The tax rate at the company is 30 percent. What is the break even unit sales for the company?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 10P
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I am having trouble with break even analysis and target profit, taxes. There was not a clear example from the textbook of break even while incorporating tax rates. I want to make sure I am doing this correctly.

here is an example:

A company sells a product for $5 and the variable costs per unit are $4. The fixed costs are $400,000 per year. The tax rate at the company is 30 percent. What is the break even unit sales for the company?

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