True-Lens, Inc., is considering producing longwearing contact lenses. Fixed costs will be $24,000, with a variable cost

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True-Lens, Inc., is considering producing longwearing contact lenses. Fixed costs will be $24,000, with a variable cost per set of lenses of $8. The lenses will sell to optometrists for $24 per set.

(a) What is the firm's break-even point?

(b) If expected sales are 2,000 sets, what should True-Lens do, and what are the expected profits?

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Quantitative Analysis For Management

ISBN: 162

11th Edition

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna

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Question Posted: Oct 08, 2012 02:07 AM

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True-Lens, Inc., is considering producing longwearing contact lenses. Fixed costs will be $24,000, with a variable cost

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FC 24000 VC U 8 P U 24 a b If D 2000 True Lens should ...View the full answer

Quantitative Analysis For Management

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