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A firm sells one product, jet pack, for a per unit price of $11,000. Variable costs per unit are $10,000. The firm also sells a
A firm sells one product, jet pack, for a per unit price of $11,000. Variable costs per unit are $10,000.
The firm also sells a second product, jet-pack-based life insurance, for a per unit price of $2,000. Variable costs per unit are $1,080.
The firm has total fixed costs of $1,000,000.
How many unit sales of jet packs are required to earn a profit of $6,000,000?
a. | 25 units | |
b. | Cannot be determined from this information. | |
c. | 49 units | |
d. | 50 units |
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