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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
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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