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retownes retownes
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6 years ago
A firm produces three products in a repetitive process facility. Product A sells for $60; its variable costs are $20. Product B sells for $200; its variable costs are $80. Product C sells for $25; its variable costs are $15. The firm has annual fixed costs of $320,000. Last year, the firm sold 1000 units of A, 2000 units of B, and 10,000 units of C. Calculate the break-even point of the firm. The firm has some idle capacity at these volumes, and chooses to cut the selling price of A from $60 to $45, believing that its sales volume will rise from 1000 units to 2500 units. What is the revised break-even point?
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Operations Management

Operations Management


Edition: 10th
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HplyEvrAftrHplyEvrAftr
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retownes Author
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6 years ago
You make an excellent tutor!
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Thanks
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Thanks for your help!!
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