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Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 230 per unit
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics.
Sales price | $ | 230 | per unit |
Variable costs | 105 | per unit | |
Fixed costs | 375,000 | per month | |
Required:
a. What number must Derby sell per month to break even?
b. What number must Derby sell to make an operating profit of $137,500 for the month?
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