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LMP Limited is a company founded by a group of marketing consultants. They had taken advantage of their clients career placement services, and thought
LMP Limited is a company founded by a group of marketing consultants. They had taken advantage of their clients career placement services, and thought they could offer additional supplemental services and advice. They're constructing a website where clients looking for help in positioning themselves in the market by creating media advertisements, examples of social media branding, info ads, and the like. Their plan is to offer some of those basics for free, attract clients onto the website. But what they're really interested in selling in their consultation time, consisting of feedback on digital marketing and social media CRMs. LMP limited is planning to launch their services with an introductory price of $100. Their fixed costs on this price were $2,000, and cost per service was $80 per user exchange. Currently, 30 clients purchased their service at the $100 price. But LMP Limited get recommendations from potential clients that the $100 price tag seems steep, so they're asking LMP Limited for a price cut of 10%, essentially going to the figure at the right. Total cost for 30 clients is $4,400, for 60 clients is $6,800, for 90 clients is $9,200, and $11,600 for 120 clients. Based on the case above, compute for the break even if the price per unit is at $100, $120, and $140. (10 points). WRITE YOUR FINAL ANSWER ONLY * 10 points
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