Laminex Ltd. manufactures a coffee table that sells for $250 per unit. The company has variable costs of $150 per unit and total fixed costs of $100,000 per period. Laminex is currently selling 1,200 units per period.
a. What is the current net income after taxes for Laminex if its effective tax rate is 25%?
b. Management anticipates that fixed costs will increase $10,000 per period due to general salary increases to office staff. How does this change the break-even point?

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The Answer of Laminex Ltd. manufactures a coffee table that sells for $250 per unit. The company has variable costs of $150 per unit and total fixed costs of $100,000 per period. Laminex is currently selling 1,200 units per period.
a. What is the current net income after taxes for Laminex if its effective tax rate is 25%?
b. Management anticipates that fixed costs will increase $10,000 per period due to general salary increases to office staff. How does this change the break-even point?