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The marketing manager of Campbell Corporation has determined that a market exists for a telephone with a sales price of $23 per unit. The production
The marketing manager of Campbell Corporation has determined that a market exists for a telephone with a sales price of $23 per unit. The production manager estimates the annual fixed costs of producing between 41,300 and 80,500 telephones would be $388,200. Required Assume that Campbell desires to earn a $120,000 profit from the phone sales. How much can Campbell afford to spend on variable cost per unit if production and sales equal 46,200 phones? Variable cost per unit
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