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A plastic cup manufacturer is considering adding a new plant to keep up with growth in demand. The location being considered will have fixed costs
A plastic cup manufacturer is considering adding a new plant to keep up with growth in demand. The location being considered will have fixed costs of $15,200 per month and variable costs of $10 per box of 1,000 cups produced. Cups are sold for a price of $15 per box of 1,000.
What volume is required to obtain a profit of $10,000 per month?
A.) 5,040 boxes of 1000 cups
B.) 4,040 boxes of 1000 cups
C.) 5,020 boxes of 1000 cups
D.) 5,010 boxes of 1000 cups
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