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2. A venture capital investment group received a proposal from Wireless Solutions to produce a new smart phone. The variable cost per unit is estimated
2. | A venture capital investment group received a proposal from Wireless Solutions to produce a new smart phone. The variable cost per unit is estimated at $350, the sales price would be set at twice the VC/unit, fixed costs are estimated at $850,000, and the investors will put up the funds if the project is likely to have an operating income of $600,000 or more. What sales volume would be required in order to meet this profit goal? | |||
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| a. | 4,143 units |
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| b. | 4,750 units |
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| c. | 5,000 units |
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| d. | 5,250 units |
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| e. | 5,513 units |
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