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The manager of Calypso, Inc. is considering raising its current price of $32 per unit by 10%. If she does so, she estimates that demand
The manager of Calypso, Inc. is considering raising its current price of $32 per unit by 10%. If she does so, she estimates that demand will decrease by 20,000 units per month. Calypso currently sells 51,700 units per month, each of which costs $25 in variable costs. Fixed costs are $199,000. a. What is the current profit? Current Profit b. What is the current break-even point in units? (Round your answer to the nearest whole number.) Break-Even Point units c. If the manager raises the price, what will profit be? (Do not round intermediate calculations.) Target Profit
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