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Problem 3: Mestle Company (CVP) Mestle Company makes and sells teacups. Below are some per unit estimates gathered by the manager of Mestle Company that

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Problem 3: Mestle Company (CVP) Mestle Company makes and sells teacups. Below are some per unit estimates gathered by the manager of Mestle Company that are based on projected sales of 16,000 teacups. Selling Price/unit $27.00 Variable Mfg. Cost/unit $10.40 Fixed Mig. Cost/unit $1.40 Variable Selling Cost/unit $0.60 Fixed Selling Cost/unit $2.80 The manager of Mestle has an operating income target of $170,000 that the manager expects to meet barely based on current projections. The manager wants to get some more comfort on the firm's ability to meet the operating income target and believes that the sales volume for teacups is uniformly distributed over [4,000, 25,000]. Compute the following: (a) Breakeven number of teacups (0.5 point) (b) The probability that the company will exceed the operating income target of $170,000 (0.5 point)

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