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A company makes three products. The three products sell at prices of $40, $32, and $55, respectively. Variable costs per unit are $20, $24, and
A company makes three products. The three products sell at prices of $40,
$32, and $55, respectively. Variable costs per unit are $20, $24, and $46,
respectively, while shared fixed costs total $2,800,000. Sales of the products
are such that for each unit sold of product 1, 4 units of product 2 and 2 units
of product 3 are sold. (a) How many units of each product must be sold in
order to break even? (b) How many units of each product must be sold in
order to earn a profit of $3,500,000
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