Rami Corp. forecasts sales of US$650,000 for 2013. Assume the firm has fixed costs of US$250,000 and

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Rami Corp. forecasts sales of US$650,000 for 2013. Assume the firm has fixed costs of US$250,000 and variable costs amounting to 35 percent of sales. Operating expenses are estimated to include fixed costs of US$28,000 and a variable portion equal to 7.5 percent of sales. Interest expenses for the coming year are estimated to be US$20,000. Estimate Rami's net profits before taxes for 2013.
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Principles of Managerial Finance

ISBN: 978-1408271582

Arab World Edition

Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix

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