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1. Costs and profit vary with output a) Total fixed costs are $200,000 and total variable costs are $100,000 at the output of 20,000 units.

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1. Costs and profit vary with output a) Total fixed costs are $200,000 and total variable costs are $100,000 at the output of 20,000 units. What are the probable total fixed costs and total variable costs at output of 10,000 units? What are the total costs at each volume level? (8 Marks) b) If the items sell for $38 per unit what is the revenue and profit if 20,000 units are sold, if 10,000 units are sold? (6 Marks) Output Units Revenue Total costs (take from above) 10.000 Profit 2. Breakeven Calculation A producer has labour costs of $1.50 per unit, material costs of $.45 per unit, and shipping costs of $.05 per unit. Advertising costs are $500,000. Salaries are $360,000. Overhead is. $400,000, If the unit selling price is 2.50 , what is the Bregke-yen in un 3 ?ris 5 Marks)

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