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From the income statement of the manufacturing company on the left, 1. Find the company?s breakeven output. 2. If the company wishes to have a
From the income statement of the manufacturing company on the left, 1. Find the company?s breakeven output. 2. If the company wishes to have a monthly net income before taxes of SR 18,000 and its cost structure remains as above, what quantity of output will it need to sell? 3. If its variable production costs increase by SR4 per bag, what will be its breakeven output? 4. After the variable production costs has been increased by SR4 per bag, what output will the company need to sell if it wishes to have the SRI8,000 monthly pretax profit stated earlier? 5. Given the variable production cost increase but no change in fixed costs, what will be the firm?s monthly profit if it sells 4,000 bags per month
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