A small manufacturing operation can produce up to 250 units per week of a product that it

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A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed costs per week are $1200.
a. How many units must the firm sell per week to break even?
b. Determine the firm’s weekly profit or loss if it sells:
(i) 120 units per week.
(ii) 250 units per week.
c. At what level of sales will the net income be $400 per week?
Use the graphical approach to CVP analysis to solve the problem.
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