Preparing a break-even analysis. The Santos Companys gross profit rate is 40 percent of net sales, its

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Preparing a break-even analysis. The Santos Company’s gross profit rate is 40 percent of net sales, its variable expenses are 31 percent of net sales, and its monthly fixed costs are $12,000.

a. Compute the company’s monthly break-even sales volume.

b. What will the estimated profit or loss be if the sales volume is $68,000?

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