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Business, 24.02.2020 07:50 hperky101

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 $ 550 per smoker
Variable costs 330 per smoker
Fixed costs 143,000 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 $39,600 after taxes?

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