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Vernon Corporation is a manufacturing company that makes small electric motors it sells for $52 per unit. The variable costs of production are $28 per
Vernon Corporation is a manufacturing company that makes small electric motors it sells for $52 per unit. The variable costs of production are $28 per motor, and annual fixed costs of production are $576,000. Required a. How many units of product must Vernon make and sell to break even? b. How many units of product must Vernon make and sell to earn a $72,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $46 per unit. How many units of product must Vernon make and sell to earn a $93,600 profit, if the sales price is set at $46 per unit? a. Sales volume b. Sales volume c. Sales volume units units units
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