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Gulliver produces explosives that are used in different mining companies. The fixed cost of is R 1 0 0 0 0 0 and the variable

Gulliver produces explosives that are used in different mining companies. The fixed cost of is
R100000 and the variable cost is R90 per unit. The value of a is R210 and that of b is 0.03.
(i) calculate the optimal volume for this product and confirm that a profit occurs (instead of a
loss) at this demand. (10)
(ii) find the volumes at which breakeven occurs; that is, what is the range of profitable demand?
Solve by hand.

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