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Fixed costs = $ 30/hr Variable cost = $16/hr +2,500 Semivariable cost = $14/hour + $500 Required Return = $3,000 Tax rate = .40 Revenue

Fixed costs = $ 30/hr

Variable cost = $16/hr +2,500

Semivariable cost = $14/hour + $500

Required Return = $3,000

Tax rate = .40

Revenue = $15/unit

Production Units = 1,000 units

Time period = 200 hours

  1. Find the following four break-even points in number of hours:

Shutdown point:

Break-even at costs:

Break-even at required return:

Break-even at required return after taxes:

  1. Find the profit after taxes for time period of 100 hours in dollars:

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