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Question - Fairfield Pizza produces and sells Hawaiian fruit pizza. It sells the pizza for $30 each and variable cost per pizza is $10. The Fairfield's monthly fixed costs are $15,000.
(1) How many pizzas must be sold to be breakeven?
(2) How many pizzas must be sold to earn before-tax income of $7,000?
(3) Suppose the income tax rate is 40% and Fairfield wants to earn after-tax income of $9,000, how many pizzas must be sold?
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