Abban manufactures a product that sells very well. The capacity of his facility is 50,000 units per month. The fixed costs are $150,000 per month and the variable costs are $12 per unit. The product currently sells for $20.

a. b. What total revenue is required for a net income of $100,000 per month? If he produced and sold 75% of the capacity and the variable costs decreased by 25%, what was the net income for the month?

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