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Teal produces one single product, a small reading tablet, and sells it at $130 per unit. Its current annual sales are $260,000. Its annual

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Teal produces one single product, a small reading tablet, and sells it at $130 per unit. Its current annual sales are $260,000. Its annual fixed costs include factory rent, $46,800; depreciation expense; equipment, $13,000; utilities, $23,400; insurance, $10,400. Its variable costs include materials, $39 per unit, and direct labour, $52 per unit. Teal's income tax rate is 20%.

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