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1 ) Magic Nelson owns a Mug Printing Company. He forecasts demand of 6 0 0 0 for next year. He sells Mugs at price

1) Magic Nelson owns a Mug Printing Company. He forecasts demand of 6000 for next year. He
sells Mugs at price of $14. He has a fixed costs of $35,000 per year and variable cost of $3.00
per Mug.
a) What is Magics revenue per year?
b) What is Magic's total cost per year?
c) What is Magics yearly profit?
d) What is Magics break-even point in units and revenue?
e) How many mugs he must sell to have a profit of $50,000?
f) Construct break-even line graph (Cost, Revenue, Profit graphs all in one graph) using X values
from Zero to 4,000 at increment of 200 units.

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