Westport Inspection Service specializes in inspecting cars that have been returned to automobile leasing companies at the

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Westport Inspection Service specializes in inspecting cars that have been returned to automobile leasing companies at the end of their leases. Westport’s charge for each inspection is $60; its average cost per inspection is $15. The owner wants to expand his business by hiring another employee and purchasing an automobile. The fixed costs of the new employee and automobile would be $3,000 per month. How many inspections per month would the new employee have to perform to earn a profit of $1,500?

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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