### Compute next years total expected fixed costs

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Cinquante Company expects to sell 100,000 units of its product next year, which would generate total sales of \$12 million. Management predicts that pretax net income for next year will be \$3,000,000 and that the contribution margin per unit will be \$40.

(a) Compute next year's total expected variable costs.

(b) Compute next year's total expected fixed costs.

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