23. Kattico currently has revenues of $4,500,000, variable costs of $1,125,000, and fixed costs of $3,000,000. Kattico
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23. Kattico currently has revenues of $4,500,000, variable costs of $1,125,000, and fixed costs of
$3,000,000. Kattico is thinking of making improvements to the production process that would increase fixed costs by $500,000, but would decrease variable costs by 40%.
At what level of revenues would Kattico be indifferent between making and not making the improvements?
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Mastering Managerial Accounting Key Concepts Through Problem Sets
ISBN: 9781626611184
1st Edition
Authors: Christine Denison
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