Technology Ventures: From Idea to Enterprise 4th Edition by Thomas Byers,Richard Dorf ,Andrew Nelson

Exercise 5

5 A software firm has fixed costs of $800,000 and variable costs of $12 per unit. Calculate the breakeven quantity (Q) when each unit sells for $50. If the firm sells 50,000 units in a year, what is its profit for that year? Assume the tax rate for the firm is 20 percent.