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A company has decided to invest in an office project expanding operations that will take 26 weeks. Cost of operations is $2.5 million per
A company has decided to invest in an office project expanding operations that will take 26 weeks. Cost of operations is $2.5 million per week; fixed costs are $500,000 per week variable costs are $250 per week with a capacity of 300 offices. Briefly discuss responses. a. Set up a total cost and revenue equation. b. How many offices are needed to breakeven? c. What is the profit or loss for 26 weeks operation at 90% capacity d. What is marginal and average costs per operation at 90% capacity
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