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What would the pretax profits be

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Question: A project has expected sales of 6,000 units, a selling price of $54 a unit, variable costs equal to 62% of sales, fixed costs of $72,000, and depreciation of $13,500. Assume that total revenues and fixed costs change by 5% in a pessimistic situation (that means revenue down and costs up). What would the pretax profits be, per year, if the pessimistic situation should occur? Show your computations.

Reference no: EM131718864

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