A call center and its equipment cost $120 million and are estimated to have a lifetime of

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A call center and its equipment cost $120 million and are estimated to have a lifetime of 30 years. Straight-line depreciation is to be used. Additional fixed costs per year are $6 million. Variable costs are $2.50; price is set at $3.75.

State annual profit (or loss) if annual volume in millions of units is

(a) 10 and

(b) 8.

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