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ABC Company is considering expanding its product line by introducing a new product variant. The estimated variable cost per unit for the new product variant
ABC Company is considering expanding its product line by introducing a new product variant. The estimated variable cost per unit for the new product variant is $50, and the estimated fixed costs for production setup and marketing are $100,000 per quarter. If the company expects to sell the new product variant at $120 per unit, calculate the number of units that need to be sold to attain a target profit of $50,000 per quarter. Provide a detailed explanation.
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