Pike Corporation sells its product, which has a variable cost equal to $21 per unit, for $25 per unit. Fixed operating costs are $180,000. To support operations, the firm requires $500,000 in debit, which has a cost (rd) of 10 percent. The tax rate is irrelevant. The sales forecast for the coming year is 70,000 units. Compute Pikes DOL, DFL, and DTL. Explain the results. Please show your work.
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