In 2013, Granny Co. has sales of 800,000, flexible (variable) costs of 200,000, and Capaciity-related (fixed) costs
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Question:
Capaciity-related (fixed) costs of 300,000. In 2014, Granny Co. expects annual property taxes to
decrease by 15,000.
a. Calculate operating income and the breakeven point for 2013.
b. Calculate the breakeven point for 2014.
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