Maxines Pumps (MP) sells bilge pumps for $250 each. Each pump costs $150 to produce, and MPs

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Maxine’s Pumps (MP) sells bilge pumps for $250 each. Each pump costs $150 to produce, and MP’s fixed operating costs equal $600,000.

(a) What is MP’s operating breakeven point? 

(b) What is MP’s operating income (NOI) when 10,000 pumps are sold?

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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