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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 64DNC

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Question

100%

Opereting income?

Three years ago, Marissa Moore started a
business that creates and delivers holiday
and birthday gift baskets to students at the
local university. Marissa sells the baskets
for $28 each, and her variable costs are $18
per basket. She incurs $12,500 in fixed
costs each year.
How many baskets will Marissa have to sell
this year if she wants to earn $29,300 in
operating income?

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