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The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $55,000. He figures it will cost

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Answer #1

In order to make a profit of 27000, let the volume be X, then

Profit = Revenue - Expense

Profit = Selling price * Volume - (Fixed Cost + Variable cost)

27000 = 140*X - (55000 + 86*X)

54*X = 82000

X = 1519 Approximately

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