Added new backhoe equipment which has raised fixed costs

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Carlos’ Landscaping Company has added new backhoe equipment which has raised fixed costs by $50,000. These backhoes are estimated to have a lifetime of 10 years. Straight-line depreciation is to be used. The additional fixed costs per year are $30,000. Average variable costs are $800 and the average price per landscaping job is $2000. What will annual profit be if the annual volume is 70 jobs?

Reference no: EM131219276

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