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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 $ 375 per unit
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics:
| Sales price | $ | 375 | per unit |
| Variable costs | 135 | per unit | |
| Fixed costs | 720,000 | 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 $240,000 for the month?
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