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1. Evergreen Fertilizer Company (EFC) produces fertilizer. The company's fixed monthly cost is $3,000, and its variable cost per pound of fertilizer is $0.50. EFC
1. Evergreen Fertilizer Company (EFC) produces fertilizer. The company's fixed monthly cost is $3,000, and its variable cost per pound of fertilizer is $0.50. EFC sells the fertilizer for $1.00 per pound. (i) [7.5 Pt.] Determine the monthly break-even volume for the company. (ii) [7.5 Pt.] If EFC changes the price from $1.00 to $1.50 per pound, comparing to sales with the original price, how much more profit can it make monthly given the demand of 6,000? (iii) [5 Pt.] EFC considers a new machine whose monthly fixed cost and variable cost are $90,000 and $0.40, respectively. Decide whether EFC needs to purchase the new machine or not, given the price is $1.00 per pound and the monthly demand is 10,000
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