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The owner of a newsstand estimates the weekly fixed cost to be $50. The owner expects to sell 300 newspapers per week at $1.50 per
The owner of a newsstand estimates the weekly fixed cost to be $50. The owner expects to sell 300 newspapers per week at $1.50 per newspaper. The variable cost per c newspaper is $0.50.
a. What level of sales volume will allow the owner to break even?
b. How does a change in sales volume (range 100-500 in increments of 50) affect profit?
c. How does a joint change in sales volume (range 100-500 in increments of 50) and variable cost (range $0.20 and $1 in increments of $0.1) affect profit?
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