Straight-line depreciation is to be used

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A local carpet manufacturer’s plant and equipment cost $285,000 and are estimated to have a lifetime of 20 years. Straight-line depreciation is to be used. Additional fixed costs per year are $130,000. Variable costs are $200 per roll of carpet and the price per roll is $3,000. What will annual profit be if the annual volume is 15,000 rolls?

Reference no: EM131219280

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