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Last month Franklin sold 24,000 litersof Liquid Chocolate. The variablecosts were 2.70 per liter and eachliter contributed 25% of its revenueto the fixed costs and
Last month Franklin sold 24,000 litersof Liquid Chocolate. The variablecosts were 2.70 per liter and eachliter contributed 25% of its revenueto the fixed costs and profits. It wasjust found that a new supplier wouldenable Franklin to both reduce itscost by 0.40 per liter and to improveits quality. However, it estimates thatit will have to spend another 3,000on advertising per month to informcustomers of the improvement. Profitsfrom the last month were 10,000.a. What is the previous months costfunction?
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