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ILLUSTRATION 17 A company has a capacity of producing 1,00,000 units of a certain product in a month. The sales Department reports that the following
ILLUSTRATION 17 A company has a capacity of producing 1,00,000 units of a certain product in a month. The sales Department reports that the following schedule of sale price is possible: Volume of Production 60% 70% 80% 90% 100% Selling Price per unit ($) 0.9 0.9 0.75 0.67 0.61 The variable cost of manufacture between these levels is $0.15 per unit and fixed cost $40,000. At which volume of production will the profit be maximum
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