Solve using the Contribution Margin approach. A small manufacturing operation can produce up to 250 units per
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Solve using the Contribution Margin approach.
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 cost per week is $1200.
a. How many units must the business 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?
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a To break even the firms total revenue must equal its total costs The total cost consists of both f...View the full answer
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