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Question- Haley manufactures a product that sells very well. The capacity of her facility is 299,000 units per year. The fixed costs are $113,000 per year and the variable costs are $10 per unit. The product currently sells for $18.
a. What total revenue is required for a net income of $462,000 per year?
b. If sales were at 75% of the capacity and the variable costs decreased by 25%, what would be the net income per year?
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