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The BIG AP Corporation distributes software for the iPhone and iPad market. Each unit of software requires $4 per unit of direct labor to manage
The BIG AP Corporation distributes software for the iPhone and iPad market. Each unit of software requires $4 per unit of direct labor to manage web traffic and a $2 per unit royalty fee to Apple Inc. The marketing department estimates monthly sales to by 10,000 units selling at $10 per unit. The company must cover monthly overhead costs of Rent ($6,000), Utilities ($2,000), and Management ($3,500). 1. What are the total monthly fixed costs? 2. What are total variable costs? 3. What is the monthly breakeven quantity
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