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1) A company produced 2,500 units of product in January and 2,000 units in February. Total production costs of the same months were 200,000 and

1) A company produced 2,500 units of product in January and 2,000 units in February. Total production costs of the same months were 200,000 and 180,000, respectively. Write the monthly total cost function.

2) A company sells its product for 5 each. Unit variable cost is 3 and total annual fixed cost is 800,000. The company is making a profit of 200,000 annually. Calculate the following:

a. Annual breakeven point in units.

b. Safety margin ratio.

c. Profit margin percentage.

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