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A manufacturer of precision castings has the capacity to produce 1,000,000 castings per year. Each sells for $15.00 The variable cost to produce the casting is $9 per unit. Annual fixed cost for the plant is $3,500,000.
a. If the plant is operating at 50% capacity, what is the profit level of the firm?
b. What percent of production is required to breakeven?
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A manufacturer of precision castings has the capacity to produce 1,000,000 castings per year. Each s...
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