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Use the following information to answer Questions 8,9,10 Reliable Racket Company manufactures tennis rackets. During a given year fixed costs are expected to be $150,000.
Use the following information to answer Questions 8,9,10 Reliable Racket Company manufactures tennis rackets. During a given year fixed costs are expected to be $150,000. Each racket requires $10 of variable cost to produce and will be sold to retail outlets for $15. What is the breakeven point in dollars? a. $300,000 b. $450,000 c. $150.000 d. $90,000 c. $675,000 How many rackets must be sold to earn an annual profit of $20,000? a 4,000 b. 14,000 c. 24.000 d. 34,000 e. 44.000 If 25,000 rackets are sold in a given year and fixed costs are increased to $160,000, the overall profit or loss is a. $25,000 profit. b. $25,000 loss. c. $35.000 loss. d. $45,000 loss. e. $45.000 profit
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