What is the dollar increase in net profit at full capacity

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A process plant making 2000 tons per year of a product selling for $0.80 per lb has annual direct production costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What is the fixed cost per pound at the break-even point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 34 percent of gross earnings?

Reference no: EM131401343

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