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Moj Corporation (MC) sell cell phone cases. MC estimates the following: Price 45.00 Fixed Costs 280,000 Variable costs 27.00 Tax rate 10% e. How many

Moj Corporation (MC) sell cell phone cases. MC estimates the following:
Price 45.00
Fixed Costs 280,000
Variable costs 27.00
Tax rate 10%

e. How many cases would have to be sold to earn a monthly target operating (before tax) income of $200,000? (1 mark)

f. How many cases would have to be sold to earn a monthly target net (after-tax) income of $200,000? (2 marks)
g. MC is considering purchasing new automated equipment. If they purchase it, it is anticipated that monthly fixed costs will increase by $100,000, but variable costs per case will be 50% of the selling price. What is the new break-even point in cases? (2 marks)
h. Based on your calculation in g. above, is purchasing the new automated equipment a good business decision and why? (Yes or no is NOT worth any marks. There needs to be an explanation along with it.) (1 mark)

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