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1. Miss Ellaneous Bakery is considering the addition of a new line of pies to its product offerings. It is expected that each pie will
1. Miss Ellaneous Bakery is considering the addition of a new line of pies to its product offerings. It is expected that each pie will sell for $17 and the variable costs per pie will be $11. Total fixed operating costs are expected to be $25,000. Miss Ellaneous faces a marginal tax rate of 25%, will have interest expense associated with this line of $3,500, and expects to sell about 4,500 pies in the first year. e. Calculate the DOL, DFL, and DCL for the new pie line
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