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A small manufacturing company produces certain plastic toys. They have a good market and variable costs are; labor cost$25.00/unit & material cost $5.00/unit. However, fixed costs are fixed at $ 45,000.
Develop equations for total cost and total revenue.
Find the breakeven points.
What profit is earned if total revenue is maximized?
What is the company’s maximum possible profit?
If the president of the company is not happy with profit and you are asked to suggest the way to improve profit, what are your suggestions?
Graph the solution in each part.
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