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clear explaination QUESTION 2 A company has fixed costs of $300,000 and produces one product with a selling price of $72.00 and a variable cost
clear explaination
QUESTION 2 A company has fixed costs of $300,000 and produces one product with a selling price of $72.00 and a variable cost of $42.00 per unit. The maximum factory capacity is 20,000 units and it anticipates selling 15,000 units. a) Write down the associated cost, revenue, and profit functions b) Determine the break- even point of operation c) How much profit will they make: i. at the present level of operation? ii. if sales increase to the maximum that the factory can supply? (Total 20 marks) Step by Step Solution
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