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The Quiet Blow Company has a small plant that manufactures noise suppressors for leaf blowers. Its annual fixed costs are $30,000, and its variable costs are $10 per unit. It can sell a suppressor for $25.
a. How many suppressors must the company sell to break even?
b. What is the break-even revenue?
c. The company sold 3,000 units last year. What was its profit?
d. Due to a new lump-sum tax, next year's fixed costs are expected to rise to $37,500. What will be the break-even quantity?
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