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Question - Company X produces a molded hard plastic covers for I-pads. Summary data from its 2014 income statement are as follows:
Revenues - $3,000,000
Variable costs - $2,100,000
Fixed costs - $1,050,000
Operating income - ($150,000)
Re-calculate the breakeven revenues if variable costs are 58% of revenues.
Calculate Freddie Corporation's operating income for 2014 if variable costs had been 58% of revenues.
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