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Question
You manufacture office desks in your plant. The fixed costs for the plant is $20,000/year. The variable cost for each is $30. You sell the desks for $70.
1. How many desks must you sell to break-even?
2. If you want to make a profit of $10,000, how many desks must you sell?
3. If the marketing department determines that the demand is 300 desks, how much would you have to charge to break-even?
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