Question
- The manufacturer of a product that has a variable cost of $2.50 per unit and a total fixed cost of $125,000 wants to determine
- The manufacturer of a product that has a variable cost of $2.50 per unit and a total fixed cost of $125,000 wants to determine the level of output necessary to avoid losses.
a.What level of sales is necessary to break even if the product is sold for $4.25?
b.If fixed costs rise to $175,000 what is the new level of sales necessary to break even?
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Intermediate Microeconomics And Its Application
Authors: Walter Nicholson, Christopher M. Snyder
13th Edition
0357133064, 978-0357133064
