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Merck Corporation manufactures blood glucose meters. Each meter sells for $55 and has a variable cost of $30. There are $45,000 in fixed costs involved in the production process. (PLEASE SHOW YOUR WORK).
a) Calculate Merck's break-even point in units
b) How much profit (loss) will Merck have if it sells 800 meters?
c) Merck's president, Kenneth C. Frazier, expects an annual profit of $200,000. How many meters must be sold to attain this profit?
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