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Your buddy comes to you with a sure - fire way to make some quick money and help pay off your student loans. His idea
Your buddy comes to you with a surefire way to make some quick money and help pay off your student loans. His idea is to sell Tshirts with the words I get on them. You get it He says, You see all those bumper stickers and Tshirts that say got milk or got surf. So this says, I get. Its funny! All we have to do is buy a used silk screen press for $ and we are in business! Assume there are no fixed costs and you depreciate the $ in the first period. The tax rate is percent.
a
What is the accounting breakeven point if each shirt costs $ to make and you can sell them for $ apiece? Do not round intermediate calculations and round your answer to decimal places, eg
b Now assume one year has passed and you have sold shirts! You find out that the Dairy Farmers of America have copyrighted the got milk slogan and are requiring you to pay $ to continue operations. You expect this craze will last for another years and that your discount rate is percent. What is the financial breakeven point for your enterprise now? Do not round intermediate calculations and round your answer to decimal places, eg
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