Celebrity Food is evaluating the kale crisper project. During year 1, the kale crisper project is expected to have relevant revenue of $400,000, relevant variable costs of $125,000, and relevant depreciation of $40,000. In addition, Celebrity Food would have one source of fixed costs associated with the kale crisper project. Celebrity Food just signed a deal with Lights Camera Action to develop an advertising campaign for use in the project. The terms of the deal require Celebrity Food to pay Lights Camera Action either $80,000 in 1 year if the project is pursued or $110,000 in 1 year if the project is not pursued. Relevant net income for the kale crisper project in year 1 is expected to be $200,000. calculate is the tax rate expected to be in year 1?
Celebrity Food is evaluating the kale crisper project. During year 1, the kale crisper project is expected to have relevant revenue of $400,000, relevant variable costs of $125,000, and relevant
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