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The Erif Company manufactures and sells a fire extinguisher. It pays $7,240 per month for rent and utilities, and $5,760 per month for management salaries.
The Erif Company manufactures and sells a fire extinguisher. It pays $7,240per month for rent and utilities, and$5,760per month for management salaries. The variable costs are$23per unit and each unit sells for $38.
a) What salesvolume (that is, the number of units), per month, is required to break even? (3 marks)
b) Whatvolume (that is, the number of units), per month, is required to generate a net income of $1,300? (3 marks)
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