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A company has fixed cost of $45,000, variable cost per unit of $11, and sells its product at $18 each.
a) What quantity must the firm sell in order to break-even? Explain how you reached this conclusion.
b) What is the firm's total revenue at the break-even level of output? Show your calculation.
c) What is the firm's total variable cost at the break-even level of output?
d) What quantity must the firm sell in order to make a profit of $62,000? Explain how you reached this conclusion.
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