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Charlie is considering opening a new business. He estimates that total fixed costs would be $24,000 per year and that variable costs would be approximately
Charlie is considering opening a new business. He estimates that total fixed costs would be $24,000 per year and that variable costs would be approximately 40 percent of sales revenue. Charlie will only open the business if he can earn a before tax profit of at least 20 percent of sales revenues. Under these assumptions, how much sales revenue must be generated by Charlies potential business?
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