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Tommy's Tile Service is planning on purchasing new tile cleaning equipment that will improve its 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 its ability to remove tough stains from ceramic tiles. The company's contribution margin is percent and its current breakeven point is $ in sales revenue. Purchasing the new equipment will increase fixed costs by $
Required:
Determine the company's current fixed costs.
Determine the company's new breakeven point in sales.
After the purchase of the equipment, how much revenue does the company need to generate a profit of $
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