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Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that the average variable costs for its products are $150
Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that the average variable costs for its products are $150 next year. Products are sold directly to retailers through a broker. The broker's commission is included in the estimate for variable costs. The average selling price to retailers will be $175. If total industry sales are expected to be about $5,000,000 next year, what market share does Rocky Mountain Furniture need to break even? (Select the closest answer) 25% 20% O 15% 10% 5%
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