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10. Sam has a printing company that prints textbooks, which are then sold to customers. His printing facility can produce a maximum of 3000 textbooks
10. Sam has a printing company that prints textbooks, which are then sold to customers. His printing facility can produce a maximum of 3000 textbooks per annum (capacity of the facility) The fixed costs per annum are $100,000, the variable costs per unit are $75, and the selling price per unit is $125 (i) Calculate the number of books he should produce and sell per year to break even (ii) In 2015, he produced and sold 1200 textbooks. Did he make a profit or incur a loss (ii) In 2016, he produced and sold 2250 textbooks. Did he make a profit or incur a loss (iv) In 2017, 80% of the facility was utilized to produce textbooks. Calculate the profit (v) In 2018, he wanted a profit of $40,000. How many books did he have to produce and (vi) What is the maximum profit per annum that he can expect from the facility? and by what amount? and by what amount? made or loss incurred if all textbooks that were produced were sold sell and what percent of the facility would he have utilized
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