Flannigan company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. annual fixed costs are $870,000. current sales volume is $4,200,000. flannigan company management targets an annual pre-tax income of $1,125,000. compute the dollar sales to earn the target pre-tax net income. a. $5,990,990. b. $5,640,000. c. $2,991,004. d. $2,612,613. e. $3,378,378.

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.