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A firm has the capacity to produce 1,495,180 units of a product each year. At present, it is operating at 68 percent of capacity. The firm's annual revenue is $1,258,150. Annual fixed costs are $280,887 and the variable costs are $.28 cents per unit. The following equations will be useful.
Profit = Revenue - Costs
Revenue = Price each * quantity
Costs = Fixed Cost + Variable Costs
Variable Cost = Variable Cost per unit * number of units
At the break even point, Profit = 0
What is the price for each unit?
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