Substituting Q = 20,000, P = $5, VC = $2, FC = $10,000, I = $20,000, PD = $12,000, and the tax rate…


Substituting = 20,000, = $5, VC = $2, FC = $10,000, = $20,000, PD = $12,000, and the tax objurgate (= 0.40) into Equation 12.9 yields

 

DTL at 20,000 units

 width=

Clearly, the formula used in Equation 12.9 provides a past plain rule for cautious the quantity of completion leverage than the appropinquation imaginative using Table 12.7 and Equation 12.8.

Equation 12.9

 width=

 width=