E45 Rimier Corp. forecasts sales of $650,000 for 2016. Assume that the firm has fixed costs of

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E4–5 Rimier Corp. forecasts sales of $650,000 for 2016. Assume that the firm has fixed costs of $250,000 and variable costs amounting to 35% of sales. Operating expenses are estimated to include fixed costs of $28,000 and a variable portion equal to 7.5% of sales. Interest expenses for the coming year are estimated to be $20,000.

Estimate Rimier’s net profits before taxes for 2016.

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Principles Of Managerial Finance

ISBN: 9780133546408

7th Edition

Authors: Lawrence J Gitman, Chad J Zutter

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