What is the minimum amount charged to break even

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You are a newspaper publisher. You are un the middle of a one-year rental contract for your factory that requires you to pay $ 500,000 per month, and you have contractual labor obligations of $ 1million per month that you can't get out of. You also have a marginal printing cost of $.25 per paper as well as a marginal delivery cost of $.10 per paper. If sales fall by 20 percent per month, what happens to the AFC per paper, the MC per paper and the minimum amount charged to break even?

Reference no: EM13242580

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