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Melbourne Meat Pies ( MMP ) is going to produce frozen meat pies at a variable cost of $ 3 per pie. MMP sells its

Melbourne Meat Pies (MMP) is going to produce frozen meat pies at a variable cost of $3 per pie. MMP sells its pies at a price of $7 per pie. The fixed costs associated with the production are $180K. The assembly line that makes these pies requires an initial i(d) Side question: If a firms fixedcosts are zero, what is the (d) DOL for that firm?
(e) Okay, back to meat pies. As MMP increases its output level, does OCF increase, decrease, or stay the same?
(f) As MMP increases its output level, do Fixed Costs increase, decrease, or stay the same?
(g) As MMP increases its output level, do Fixed Costs increase, decrease, or stay same ... relative to OCF?
(h) As output level increases, degree of operating leverage just gets closer and closer to what number?nvestment of $200K; this as-sembly line will be depreciated over 4 years.

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