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4. Miller, Inc. is a manufacturing company that produces playing cards. The company is the leading playing card manufacturer in the U.S., but also
4. Miller, Inc. is a manufacturing company that produces playing cards. The company is the leading playing card manufacturer in the U.S., but also is a multi-national company that provides cards in Europe and South America. Miller, Inc. has hired you as a product manager for their blue backed line of playing cards. You are about to go into production to manufacture 10,000 units of playing cards. You have determined the following costs will go into the production of the cards. Paper $1,287 Electricity $ 84 Insurance $ 72 Direct Labor $ 846 Advertising $ 128 Factory rent $1,090 Ink $ 123 Sales Commission $ 263 The selling price for one pack of the blue backed playing cards is $2.10. 1. Calculate the total fixed costs: $ 2. Calculate the total variable costs: $ 3. Calculate the break-even in units: 4. Calculate the break-even in revenue: $ 5. What could you do to reach the break-even point quicker? 6. If you were producing 20,000 units, how would that change the break-even point?
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