Determining the fixed costs for the year

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Reference no: EM132509838

You are going to sell smoothies at the beach. Your fixed costs for the year will be $150,000. The variable cost for each drink is $3.00. You will sell each drink for $8.00.

Determine:

a) Number of drinks to be sold in order to breakeven.

b) Operating income if 15,000 drinks are sold.

Reference no: EM132509838

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