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The marketing manager of Perez Corporation has determined that a market exists for a telephone with a sales price of $ 2 1 per unit.

The marketing manager of Perez Corporation has determined that a market exists for a telephone with a sales price of $21 per unit. The production manager estimates the annual fixed costs of producing between 41,300 and 81,800 telephones would be $340,000.
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Assume that Perez desires to earn a $125,000 profit from the phone sales. How much can Perez afford to spend on variable cost per unit if production and sales equal 46,500 phones?
Variable cost per unit
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