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Tommy's Tile Service is planning on purchasing new tile cleaning equipment that will improve their ability to remove tough stains from ceramic tiles. The company's
Tommy's Tile Service is planning on purchasing new tile cleaning equipment that will improve their ability to remove tough stains from ceramic tiles. The company's contribution margin is 25% and its current break-even point is $435,200 in sales revenue. Purchasing the new equipment will increase fixed costs by $10,000.
After the purchase of the equipment, how much revenue does the company need to generate a profit of $125,000?
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