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A company produces a electronic timing switch that is used in consumer and commercial products. The fixed cost is $80,000 per month, and the variable
A company produces a electronic timing switch that is used in consumer and commercial products. The fixed cost is $80,000 per month, and the variable cost is $89 per unit. The selling price per unit is p = $200 0.02D, based on price-demand equation. a.) Determine the optimal volume for this product and confirm that a profit occurs (instead of a loss) at this demand. b.) Determine the volumes at which breakeven occurs; that is, what is the range of profitable demand?
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