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Pitre, Inc. earned net income of $150,000 during 2010. The company wants to earn net income of $25,000 more during 2011. The company's fixed costs have been and are expected to remain at $40,000. Variable costs have also maintained stability at 20% of sales; this rate is expected to continue into 2011. Pitre, Inc. sells watches for $60 each.
a) Determine break even in dollars for 2011.
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