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The marketing manager of Perez Corporation has determined that a market exists for a telephone with a sales price of $22 per unit. The
The marketing manager of Perez Corporation has determined that a market exists for a telephone with a sales price of $22 per unit. The production manager estimates the annual fixed costs of producing between 40,800 and 81,700 telephones would be $374,100. Required Assume that Perez desires to earn a $133,000 profit from the phone sales. How much can Perez afford to spend on variable cost per unit if production and sales equal 46,100 phones? Variable cost per unit
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