You are considering starting a business selling inexpensive inline skates. You assume that you will charge a

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You are considering starting a business selling inexpensive inline skates. You assume that you will charge a price of \($100\) per pair. You can purchase inline skates from a manufacturer in China for \($20\) per pair. Transportation costs to the US are \($5\) per pair.

Administration costs of operating are \($1\) million, which do not vary with the number of inline skates purchased or sold.

How many pairs of inline skates must be purchased and sold to make \($100,000\) in profit (ignoring taxes)?

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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