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Exercise 9: A company purchases the raw material for the manufacture of its product at a price of 1.50 per kg. 2 kg of
Exercise 9: A company purchases the raw material for the manufacture of its product at a price of 1.50 per kg. 2 kg of the raw material are used per unit of the product. Other variable costs per unit of the product: Finished wages 1.50 variable production overheads 0.90 variable sales overheads 0.60 The company has the following fixed costs per month. Manufacturing overheads 15,000 Selling overheads 7,000 Other overhead costs 2,500 The product is sold for 15 per unit. Determine the company's break-even point and plot revenue, cost, and profit functions.
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