Mercury Airs debt consists of $50,000 in accounts payable, $100,000 in 10 percent notes payable, and $240,000

Question:

Mercury Air’s debt consists of $50,000 in accounts payable, $100,000 in 10 percent notes payable, and $240,000 in 8 percent bonds. Mercury has no preferred stock. If its marginal tax rate is 35 percent, what is Mercury’s financial breakeven point?

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