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The marketing manager of West Corporation has determined that a market exists for a watch with a sales price of $82.50 per unit. The production
The marketing manager of West Corporation has determined that a market exists for a watch with a sales price of $82.50 per unit. The production manager estimates the annual fixed costs of producing between 5,000 and 20,000 watches would be $355,000. Instructions: Assume that West Co. wants to earn a $500,000 profit from the watches sales. How much can West Co. afford to spend on variable cost per unit if production and sales equal 18,000 watches? If the competitor of West Co, has the sale price at 62.50 dollars, as a manager what alternatives do you have to adjust the price or lower costs and you represent the attractive offer for the competition. If West Co. wishes to establish his break-even point in units of how many watches, he must sell to reach his tie point. Using the data for West Co. present a graph for its total fixed costs
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