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A product is sold to the retail trade at a price of $ 20, the current annual turnover being 60,000 units. marginal cost of the
A product is sold to the retail trade at a price of $ 20, the current annual turnover being 60,000 units. marginal cost of the product is $ 15. and annual fixed cost amount to $ 180000.
calculate the following:
a) annual profit
b) breakeven point for each of the following
I) if marginal cost increased to 16;
ii) if fixed cost and sales volume increase by 10% while the marginal cost still at $ 15.
iii) fixed cost ($ 180000) and selling price ($20) both reduced by 10%
iv) Sales quantity(60000) is increased by 40%
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