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You have the following information from the Aracaf Restaurant. Cost of sales are 43% of total sales and wages are 25% of total sales. Rent expense for the month is $13,000, utilities expense is $5,500 and insurance expense is $4,000.
a) Calculate the break-even sales level for the month.
b) Actual Sales for the month were $200,000. Determine the net income (or loss) for the month.
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