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Madengrad Company manufactures a single electronic product called Precisionmix. This unit is a batch-density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. Precisionmix sells for $900 per unit. The following variable costs are incurred to produce each Precisionmix device:  Madengrad's income tax rate is 40%, and annual fixed costs are $6,600,000. Except for an operating loss incurred in the year of incorporation, the firm has been profitable over the last 5 years. If Madengrad Company achieves a sales and production volume of 8,000 units, the annual before-tax income (loss) will beA. $(2,520,000) B. $(4,200,000) C. $(420,000) D. $1,780,000 |