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The owners have set a target profit of $25,000 per month ($300,000 per year) in order for them to decide to devote themselves full time
- The owners have set a target profit of $25,000 per month ($300,000 per year) in order for them to decide to devote themselves full time to JW Sports Supplies. Realizing from their projected income statements that their current predictions fall short of the $25,000, they want to evaluate the impact of alternative actions. Specifically, they want to evaluate each of the following factors separately (in doing so, assume all other factors stay the same as projected in the income statement): a. What price must the company set to achieve a profit of $25,000? A) What must the Variable cost per unit be to achieve a profit of $25,000? B) How many units must it sell to achieve a profit of $25,000? C) What must total monthly fixed costs be to achieve a profit of $25,000?
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