Priest and Sons, a local manufacturer of a product that sells for $10.90 per unit. Variable cost
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Question:
Priest and Sons, a local manufacturer of a product that sells for $10.90 per unit. Variable cost per unit is $7.85 and fixed cost per month is $1,220. Monthly production capacity is 1,100 units.
(a) What is the breakeven quantity? Express your answer in whole number
(b) Priest and Sons is considering buying a new machine which will make the fixed cost increases to $1,800 per month but will help to reduce their variable cost by 30%. What must their new selling price be if they want to make a profit of $2,236 from the sale of 400 products? Express your answer up to 2 decimal points.
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
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