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Question #1 Jason Smart Company sells car batteries to service stations for an average of $195.85 each. The variable cost of each battery is $125.85
Question #1 Jason Smart Company sells car batteries to service stations for an average of $195.85 each. The variable cost of each battery is $125.85 and monthly fixed selling costs total $175,000.
Required:
a. What is the breakeven point in batteries?
b. What is the breakeven level in batteries, assuming they desire a $140,000 net income?
c. What is the breakeven level in batteries, assuming the desired net income is $140,000 assuming a 20% income tax rate?
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