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Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost characteristics. Sales
Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost characteristics. Sales price Variable costs Fixed costs $ 76 per smoker 38 per smoker 281,200 per month Hunter & Sons is subject to an income tax rate of 40 percent. Required: a. How many smokers must Hunter & Sons sell every month to break even? b. How many smokers must Hunter & Sons sell to earn a monthly operating profit of $63,840 after taxes? a. Break-even sales in units b. Number of units to be sold
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