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need further more help Smithson Foods is considering launching a new line of frozen frult pies. The estimated start up costs are $300,000. Pies would
need further more help Smithson Foods is considering launching a new line of frozen frult pies. The estimated start up costs are $300,000. Pies would seil to retailers for $2.80 per unit. The variable costs for materials and labor are estimated to be $1.90 per pie. a. Construct Cost (C), Revenue (A), and Profit (P) functions in terms of the number of pies (x). b. What is the breakeven point in units? In dollars? c. Demand is estimated to be 20,000 ples per month. How long wil it take Smithson to breakeven? d. Smithson will only consider investments that will return a proti of 30% of start up costs. How many units must they sell? c. If they require a profit of 6% of revenue, how many must they sell? f. Smithson is uncertain about its variable costs since it is presently negotiating a new contract with its workers and frut prices depend upon crop yieids. How high can variable costs fise and they still be able to breakeven in 24 months
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