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Question

Classy Lamps assembles and sells personalized lamps from high-end components. Its lamps are assembled from components costing $25 per system and sells for $120. Labour costs for assembly are $15 per lamp. This product line's share of overhead costs is $4,000 per month. a) How many lamps must be sold each month to break even on this product line? b) What will be the profit or loss for a month in which 85 lamps are sold?

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