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A company is planning to release a new product. The equipment needed to start production costs $5,264 and will be depreciated linearly over 8 years.

A company is planning to release a new product. The equipment needed to start production costs $5,264 and will be depreciated linearly over 8 years. The firm expects to sell 70 units of the product with a unit price of $178 with a gross margin of 85%. Other operating costs are $17 per unit. If the company's marginal tax rate is 24% what are the incremental earnings?

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