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QUESTION 9 ABC Company produces toy koalas and toy bears. Fixed costs are $2,820,000 per year. Sales revenue and variable costs per unit are as
QUESTION 9 ABC Company produces toy koalas and toy bears. Fixed costs are $2,820,000 per year. Sales revenue and variable costs per unit are as follow (in $): Koalas Bears 20 25 Sales price Variable costs 8 10 1. Suppose the company currently sells 60,000 koalas per year and 140,000 bears per year. Assuming the sales mix stays constant, how many koalas and bears must the company sell to break even per year? (2 marks) and bears must the company sell to make an operating profit of 2. How many koalas $282,000? (2 marks) 3. What is the profit if the company sells 300,000 toys (assuming the same sales mix)? (1 mark) (use the sign $ for dollars Do not use commas for quantities, e.g. 1000 and not 1,000. Use $ for values, e.g. $1000 and not $1,000 or just 1000
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