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How many videos must be sold to break even

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Reference no: EM132841061

A movie maker is looking into producing a movie. The movie will be released straight to video. The cost of filming the movie will be $6 million, production costs to create the videos is $5 per unit. The videos will sell for $25 each.

Problem a) How many videos must be sold to break even?

Problem b) If 400,000 are produced, determine the Average Cost and Marginal Cost of each movie?

Reference no: EM132841061

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