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Question
A manufacturing company is considering producing a new product. The variable cost of the new product is $60 per unit, and the total fixed costs are $75,000 for a month. The company could produce 1500 units per month, and sell the product for $125 each. What would be the net income at 90% capacity?
▸ $10,000 ▸ $15,000 ▸ $12,750 ▸ $12,225 ▸ $16,000
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