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. A manufacturer of precision cutting tools has the capacity to make 1,000,000 cutting tools per year. Each sells for SR 15. The variable cost
. A manufacturer of precision cutting tools has the capacity to make 1,000,000 cutting tools per year. Each sells for SR 15. The variable cost per unit to produce the tools is SR 10 each. Annual fixed costs for the manufacturer are SR 350,000. Then the break even point in the production level is closest to:
a) 70,000b) 17,500c) 35,000d) 23,333
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