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Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price of the part is 30 $/unit. The annual fixed
Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price of the part is 30 $/unit. The annual fixed cost of the plant is $2,000,000. Unit variable labor cost is 10 $/unit, unit variable material cost 5 $/unit, unit variable overhead cost 3 $/unit. a )How many units should be produced to start making profit (X)? b) How many units should be produced to make $1000,000 profit (Y)?
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