Mary is concerned with evaluating her business based on the break-even point. Last year, in her business with 550 sales (all of the same product), she had the following annual expenses: Salary (flat rate): $50,000 Rent: $50 per unit sold Utilities (flat rate): $8,000 This year, salary expenses are expected to increase 10% while all other expenses will increase 5%. Assuming last year’s revenues of $96,250 are expected to increase 25% this year with
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