# Question

Premier Primer Pumps (PPP) sells sump pumps for $2,500 each. The variable costs associated with the manufacture of each pump are $1,750, and fixed operating costs are $150,000 annually. PPP normally sells 300 pumps each year, has an interest expense equal to $30,000, and has a marginal tax rate of 40 percent. Given this information, what is PPP's operating breakeven point?

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