Determining the level of fixed costs, Accounting Basics

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Determining the level of fixed costs

Problem:

Brackets, Inc currently anticipates that if they had a 10% increase in sales, net operating profits would increase by 60%.

Required:

Question: If Brackets Inc's NOI is $14 million, what level of fixed costs do they have?

Note: Please provide reasons to support your answer.

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Accounting Basics: Determining the level of fixed costs

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Accounting Basics: Determining the level of fixed costs

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