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PROBLEM 4: Buenaflor Industries intends to carve a market share of at least 25% as its initial penetration segmentation. The Company could and decided to

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PROBLEM 4: Buenaflor Industries intends to carve a market share of at least 25% as its initial penetration segmentation. The Company could and decided to operate at 60% of the rated maximum capacity to provide continuously the market with fixed quantities of supply at 4,000,000 units every year. The derived demand for the firm as an outcome of a thorough consumer survey furnished the schedule (annual basis). PRICE QUANTITY DEMANDED 62.00 0 60.50 1,000,000 59.00 2,000,000 57.50 3,000,000 56.00 4,000,000 54.50 5,000,000 Price = 62- 0.0000015Q Variable Cost = 42 + 0.000001Q Total Fixed Cost = 17,500,000 1. How profitable is the firm in terms of break-even analysis? 2. How many units must be produced to maximize profit? 3. How much is the maximum profit

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