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A company produces circuit boards used to upgrade computer equipment. The fixed cost is $42,000 per month, and the variable cost is $53 per circuit
- A company produces circuit boards used to upgrade computer equipment. The fixed cost is $42,000 per month, and the variable cost is $53 per circuit board. The selling price per unit isP=$150 – 0.02D. The maximum output of the plant is 4,000 units per month.
- 1 Determine the optimal demand for this product.
- 2 What is the maximum profit per month?
- 3 At what volume does breakeven occur?
- 4 What is the company’s range of profitable demand?
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Managerial accounting
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
471467855, 978-0471467854
