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3) Assuming that a firm has unit costs of $10 per unit; fixed costs of $700,000; variable cost per unit is $3; $2 million invested

3) Assuming that a firm has unit costs of $10 per unit; fixed costs of $700,000; variable cost per unit is $3; $2 million invested in capital for the production of the product, a desired rate of return on their investment of 15%, and expected unit sales of 100,000. What is the target return price? How many units must be produced and sold so that a firm neither makes a profit nor a loss? What is the total profit that a firm will get?

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