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2.Given that fixed costs are $900,000/year, variable costs $131.50/unit and selling price is $[ 600 -...

2.Given that fixed costs are $900,000/year, variable costs $131.50/unit and selling price is $[ 600 - 0.05(D)]/unit, a profit of $100,160 is attained when annual volume is:

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Answer #1

Total profits is nothing but the difference between total revenue and total cost. Let the annual volume equal n. After solving, we get a profit of $100,160 when the volume is either 3,290 or 6,080. The working is shown below.

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