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Question - Maker Sun Chairs is trying to determine the optimal price to charge for its galvanized deck chairs. The company has total fixed costs of $120,000 and the deck chairs have a unit variable cost of $27.00 per unit. Maker Sun Chairs has determined that the following relationships exist between price and demand:
Unit Price
Unit Demand
$45
7,200
$44
7,800
$43
8,400
$42
8,800
Required - What is the anticipated profit at a price of $42?
During 2011, Gamma accrued warranty expenses of $900 and paid cash to honor warranties of $500. Gamma's taxable income for 2011 would be:
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