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(TCO 6) T-Tunes, Inc. is considering the introduction of a new music player with the following price and cost characteristics: Sales price per unit:$120 Variable
(TCO 6) T-Tunes, Inc. is considering the introduction of a new music player with the following price and cost characteristics:
Sales price per unit:$120
Variable cost per unit: $60
Annual fixed costs:$150,000
(a) How many units must T-Tunes sell to break even?
(b) How many units must T-Tunes sell to make an operating profit of $240,000 for the year?
(c) What will the operating profit be, assuming that the projected sales for the year are 8,000 units?
Consider requirements (b) and(c) independent of each other.
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